Fintech startup M2P Fintech has announced its acquisition of credit card sourcing startup Wizi. With the acquisition, M2P aims to strengthen the plug-and-play model of its platform. Reports suggest that the deal was a mix of cash and stock, bringing the valuation of Wizi at approximately $5 Mn.
Launched in 2014 by Madhusudanan R, Muthukumar A and Prabhu R, M2P Fintech is an Application Programming Interfaces (API) infrastructure startup that enables businesses to embed financial products into its customers journey in tie-ups with banks and other institutions. The company claims to have enabled over 200 customers to date. M2P’s clientele includes tech companies such as Slice, Cred, Ola, Razorpay, and others.
Founded in 2019, Wizi posits to be a super app for credit cards, enabling consumers to avail new credit cards online, manage their existing cards, track payments and more. Wizi provides sourcing and management of credit card services and claims to have nearly 300,000 on its app.
M2P launched its programmable credit card platform earlier this year that allowed banks and fintech companies to onboard and use APIs, providing customisable corporate and commercial credit cards to its customers. As part of the deal, Wizi’s three founders and nearly 20 employees will be joining M2P’s team.
M2P, formerly known as YAP, had raised $10 Mn as part of its Series B funding in March this year from investors, including Flourish Ventures and Omidyar Network India. It has, to date, raised $15 Mn from Beenext, Better Capital, BharatPe’s Ashneer Grover, Cred’s Kunal Shah and several others.
“We rolled out the Programable credit card stack in March this year and in the first 6 months, we signed up over half a dozen Banks. We realised most banks in the card issuance space did not have digital origination capabilities, coupled with most incumbent products lacking basic mobile interfaces for customers to manage their credit card account,” said Madhusudanan R, cofounder, M2P Fintech.
“Wizi serves both these gaps elegantly. With their early traction, we are excited with the prospect of taking the platform capabilities to the top 50 Banks in India and potentially take it to the rest of the world,” he added.
The acquisition of Wiz comes just days after M2P invested $4 Mn in Future-Group backed LivQuik Technology to cater to early-stage fintech startups which have not been served adequately due to high governance costs and uncertainty around business model and scalability.
As digital payments continue to pick up pace in India, Niti Aayog, in its recent report titled ‘Digital Payments – Trends, Issues and Opportunities,’ forecast the online payment industry to grow to $1 Tn by 2023. Further, the Indian prepaid cards market alone is expected to grow by over 35% CAGR from 2021 to 2026 and reach $340 Bn by 2026.