M2P Fintech, an API infrastructure platform formerly known as Yap, is on the verge of closing a large funding round. Sources in the know have told that the Bengaluru-based company is closing an investment of $80 million from new and existing investors. It has closed this funding round after a gap of two and half years. In the period in between, M2P Fintech closed its $56 mn equity round by Insight Partners for a post-money valuation of $650 mn.
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It’s reported that the new round is led by a new investor. Current investors, including Insight Partners, are also expected to participate. The funding will be pivotal in enhancing the technological infrastructure of M2P Fintech and fastening growth in Indian and international markets. Among other countries, it has operations in Nepal, UAE, Australia, New Zealand, Philippines, Bahrain, and Egypt.
The M2P Fintech API platform enables businesses to offer their own branded financial services while the company partners with fintech companies to ensure compliance. That capability positioned the company as a leader in the API infrastructure business against key competitors, including Setu, Signzy, and Decentro.
Sources close to the deal said that the new round of funding will value M2P Fintech at roughly $880-900 million post-money. It is further learnt that the company has already got a term-sheet and, as of now, the deal is likely to be announced publicly any time soon. Despite the fact, M2P Fintech and Insight Partners could not respond immediately to the queries.
T o date, M2P Fintech has seen a fund raise of Rs 864 crore, Beenext is the largest shareholder with a little over 13 percent stake in the firm, founders, Madhusudhan R, Muthukumar A and Prabhu R—own a little over 34 percent of the firm. It has also strengthened its product offerings through strategic acquisitions; including that of Goals101, Syntizen, and BSG ITSOFT.
M2P Fintech has shown good growth on the financial front. The company’s operating revenues surged 2.26 times to Rs 440.7 crore in FY23 from Rs 194.74 crore in FY22. This, however, increased the loss, which surged 3.35 times to Rs 134.26 crore in FY23.
The event of raising so much funding and the strategic buy further underpin the position of a robust player in the competitive landscape of the fintech industry. With an expanded footprint across the country and internationally, new funding may prove very critical to continue fast growth without losing speed and enhance technology muscle.
On the final note, the $80 million funding that M2P Fintech is eyeing would be huge for the firm while indexing the position in commanding market control and growth potential. Not only will the investment bolster its technological infrastructure but also support expansion across several markets, taking its lead in API infrastructure even further.
