M2P Fintech to acquire Mad Street Den in distress sale

Digital banking infrastructure company M2P Fintech is set to acquire Chennai-based AI startup Mad Street Den, sources aware of the development told Entrackr.

Moneycontrol, which first reported the development, stated that the deal is a mix of stock and cash.

According to sources, M2P Fintech is acquiring Mad Street Den in a distress sale for approximately $10-15 million. The company has raised over $50 million to date, including a $30 million round in January 2023 from Alpha Wave and Peak XV (formerly Sequoia Capital).

Founded in 2016 by Ashwini Asokan and Anand Chandrasekaran, Mad Street Den’s core product, Vue.ai, focuses on the retail segment, providing automation and inventory management solutions.

This marks M2P Fintech’s second acquisition in the past 15 months. In December 2023, it acquired Goals101, a transaction behavioral intelligence (TBI) firm operating in India and other geographies.

M2P Fintech provides API infrastructure that enables businesses to offer their own branded financial services through partnerships with fintech companies while ensuring regulatory compliance. The company also closed a $100 million primary and secondary funding round in September last year.

M2P’s operating revenue jumped 2.26X to Rs 440.7 crore in FY23 from Rs 194.74 crore in FY22, while losses widened 3.35X to Rs 134.26 crore.