8i Ventures Partially Exits M2P Fintech At A 36x ROI

Early-stage venture capital fund, 8i Ventures has announced a partial exit from fintech startup, M2P Fintech at a return on investment (ROI) of 36X. 

8i Ventures originally exited M2P Fintech in April this year after selling one-fifth of its 4.5% stakeholding in the startup. It sold its shares to M2P Fintech’s investors Insight Partners and Tiger Global. 

It invested in M2P Fintech through its maiden fund (Fund I) in 2020 when the startup was valued at $10 Mn. At the time of exit, M2P Fintech’s valuation soared to $600 Mn, a statement from the startup revealed. . 

Madhusudanan R, cofounder and CEO at M2P Fintech said, “8i Ventures is the first venture capital fund to believe in our vision of building a BaaS infrastructure platform. It has backed us in all funding rounds including Seed, Series A and Series B rounds.” 

Founded in 2014 by Madhusudanan R, Muthukumar A and Prabhu R, M2P Fintech is an API platform that facilitates businesses in building and embedding custom APIs into its customers’ journey. It counts slice, CRED, Ola, and Razorpay as its clients. 

M2P Fintech has a presence in more than 20 markets including India, Nepal, Egypt, United Arab Emirates, Bahrain, Philippines, Australia, and New Zealand. 

Earlier this year, M2P Fintech secured $56 Mn in its Series C1 funding round led by New York-based private equity and venture capital firm Insight Partners along with MUFG Innovation Partners. Other investors including Tiger Global and Better Capital also participated in the round.

In October 2021, the fintech startup secured $35 Mn in its Series C funding round from Tiger Global, BEENEXT, Flourish Ventures, Omidyar Network India, 8i Ventures, and Better Capital. 

So far, M2P fintech acquired two startups – SaaS startup Origa AI and credit card sourcing startup Wizi for about $2.5 Mn and $4 Mn respectively. It also infused $4 Mn in payments startup LivQuik Technology.

Mumbai and Bengaluru-based early-stage fund, 8i Ventures backs startups working in the fintech and consumer sectors of India. It has backed more than 45 early-stage startups including slice, M2P, Carwale.com, HCG Global, EzeTap, Blue Tokai, MoneyTap and Signzy.

8i Ventures’ maiden fund, Fund I has a corpus of $15.5 Mn. The fund invests in early and growth-stage startups with a cheque size ranging from $300K to $1.3 Mn. It consists of $13 Mn as assets under management (AUM) and the remaining $2.5 Mn as its co-invest AUM, according to the statement.

8i Ventures’ Fund I is currently up 2.7X with an internal revenue rate (IRR) of 110% and a Multiple On Invested Capital (MOIC) of 3X. It has so far invested in fintech, consumer and web 3.0. Its portfolio has received follow-on investments from top global VCs including Tiger Global, Insight Partners, Flourish, Omidyar, and Beenext.

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