Bengaluru-Based Fintech Startup M2P Adds Visa To Its Cap Table

Financial infrastructure provider M2P has added American multinational financial service provider Visa to its cap table. The Bengaluru-based fintech startup M2P received investment of $2.7 Mn (INR 22.5 Cr) in its Series C-1 round from the US-based company. 

As per the regulatory filings accessed by Inc42, the startup allotted 6,315 Series C-1 compulsory convertible preference shares (CCPS) to Visa International Service Association. Apart from this, it also allotted 842 Series C-1 CCPS to its existing investor DMI Alternative Investment Fund, while it also received nearly $1 Mn from Utsav Somani Investments. 

In total, it raised $4 Mn (INR 33 Cr), as per the filings.

Earlier this year, M2P raised $56 Mn in its Series C1 round at a valuation of around $600 Mn. 

The round was led by Insight Partners in participation with Japan’s MUFG Bank, and also saw participation from its existing investors Tiger Global, Better Capital, BEENEXT, Flourish Ventures, Omidyar Network, 8i Ventures, and the DMI group through its investment vehicle  Sparkle Fund.

The latest round of investment can be a part of the previous round of funding. 

M2P had raised $35 Mn in its Series C round in October last year. The round was led by Tiger Global, and saw participation of its existing investors such as BEENEXT, Flourish Ventures, Better Capital, and 8i Ventures. 

The startup recently gave a partial exit to 8i Ventures with 36X return on investment. 

Founded by former Visa employees Madhusudanan R, Muthukumar A and Prabhu R, M2P is an API platform that facilitates businesses in building and embedding custom APIs. It counts Slice, CRED, Ola, and Razorpay among its clients. 

M2P claims to have presence in India, Nepal, Egypt, the UAE, Bahrain, Philippines, Australia, and New Zealand. It also offers lending and neobanking products to its customers. 

The startup has been on an acquisition spree post raising its Series C1 round. It has already acquired five startups in 2022 so far – Syntizen, Finflux, Wizi, Origa, and BSG ITSOFT. 

Visa has been investing in Indian fintech startups for some time. It earlier backed IPO-bound fintech solution provider Paymate, neobanking startup Open, and Billdesk, among others. Earlier this year, Visa said it was exploring partnerships with fintech startups for B2B payments to shore up its corporate card-based solutions. It said it was looking for a long-term relationship across all of the value chain of corporate and B2B suppliers. 

Another fintech giant Mastercard is also actively investing in the country’s startup ecosystem. 

India’s fintech market is one of the fastest growing in the world and is projected to reach a size of $1.3 Tn by 2025, according to an Inc42 report.