Chennai-based M2P Fintech, which provides API infrastructure solutions for banks mainly in Asia, has raised $56 million in a C1 series round led by Insight Partners. The Mitsubishi Group’s MUFG Innovation Partners participated in the round, along with existing investors Tiger Global and Better Capital, M2P said in a press release.
Just last October, M2P raised $35 million in a Tiger Global-led Series C round. Entrackr had exclusively broken news of the investment. The firm, formerly known as Yap, said that it has raised over $100 million since early 2021. The firm did not disclose what its valuation currently stood at, but at the time of the October round, we estimated that it was around $250–300 million.
As per Entrackr’s sources, the company has raised the fresh round at over $600 million valuation.
The firm offers tech connecting fintech companies, banks and merchants with credit and prepaid cards, along with a suite of neobanking solutions. Madhusudhan R, the firm’s startup and CEO, cited the “urgency for businesses to adopt an API platform” following the COVID-19 pandemic as a key driver of the company’s astronomical growth in the last two years.
M2P says its key markets aside from India are the United Arab Emirates, Australia & New Zealand, Nepal, the Philippines, Bahrain, and Egypt.
While the company is yet to file its annual financial statement for FY21, its operating revenue jumped 4.6X to Rs 22.35 crore in FY20 as compared to Rs 4.88 crore in FY19. Unlike several fintech startups, it posted a profit of Rs 73 lakh during its initial year of operations.
M2P Fintech competes with the likes of Setu, Signzy and Decentro in the API infrastructure business. After M2P, Setu is the second well-funded startup in the space. It had closed $15 million in its Series A round in August 2020 and posted an income of Rs 3 crore in FY21.
