Tiger Global leads $35 Mn round in M2P Fintech

API infrastructure company M2P Fintech, previously known as Yap, has secured $35 million in Series C financing led by Tiger Global Management. Existing investors Beenext, Flourish Ventures, Omidyar Network India, 8i Ventures, Better Capital and the DMI Group via its investment vehicle Sparkle Fund also participated in the round.

Entrackr had exclusively reported the development on July 1.

Chennai-based M2P Fintech, which powers some of the leading banks, fintechs and consumer internet companies across Asia, intends to use the fresh funds to enhance its API infrastructure capabilities and expand its reach beyond Asia. 

While the company did not disclose its valuation in the current round, Entrackr’s sources estimate that it is likely to be valued at around $250-300 million in this round. The company was valued at around $70 million during its Series A round in March this year.

M2P Fintech’s API enables businesses and platforms to offer their own branded financial services through partnerships with fintech companies while ensuring regulatory compliance. Apart from India, M2P has a market presence in Nepal, UAE, Australia, New Zealand, the Philippines, Bahrain and Egypt. 

The company plans to expand its footprint to Indonesia, Bangladesh, Vietnam, and across the MENA region.

Separately, M2P has passed a resolution to introduce a new employee stock option plan “ESOP 2021” with upto 44,800 options, regulatory filings show. The ESOP would be exercisable into not more than 44,800 equity shares of the company worth nearly $7.5 million as per Fintrackr estimates. 

M2P Fintech claims to have achieved 400% Y-O-Y revenue growth and is processing more than $10 billion in annualised payments volume across millions of users through more than 500 fintech partnerships. 

According to Fintrackr, M2P’s operating revenue jumped 4.6X to Rs 22.35 crore in FY20 as compared to Rs 4.88 crore in FY19. It posted a total expenditure of Rs 21.75 crore during the period and unlike several fintech startups, it posted a profit of Rs 73 lakh. The company is yet to file its annual financial report for FY21.

In the API infrastructure business, M2P Fintech competes with Setu, Signzy, Decentro et al.