Tamil Nadu-based M2P Fintech (formerly, YAP) has announced its acquisition of SaaS startup Origa AI. With the acquisition, M2P aims to strengthen the plug-and-play model of its platform and technology capabilities around debt collection.
The deal was a mix of cash and stock, bringing the valuation of the acquisition to $2 Mn – $2.5 Mn.
“All investors of Origa AI have got an exit,” M2P cofounder Muthukumar A told Inc42. “It is a complete business acquisition that helps M2P expand its verticals. Origa AI founder Venkatesh Chari will take up a product leadership role at M2P and will continue to build Origa AI and bolster the debt management stack,” he added.
Founded in 2018 by Chari, Origa AI is a B2B debt recovery platform aimed at borrowers, lenders, and collection agents. It provides services such as mapping the collection process, driving a customer-centric engagement, debt resolution strategies in a marketplace model.
The startup, which competes with the likes of Credgenics, CreditNirvana, Creditmate, has previously raised a total of $253K in two seed rounds from US-based Better Capital and EMVC.
The acquisition comes on the heels of M2P acquiring credit card sourcing startup Wizi, a $4 Mn investment in Future Group-backed LivQuik and its partnership with Canada-based Buckzy Payments to expand internationally.
“Moving forward, we intend to leverage our partnerships with fintech, and banks and help them with collection processes more efficiently,” Muthukumar added.
“We are constantly looking at building our platform and looking for organic and inorganic opportunities. As the opportunity presents for providing better capabilities to our customers, we are open to such acquisition,” he added, signalling more strategic partnerships are in line. He also stated that in the next six months, M2P will be integrating all its acquisitions and partnerships onto its platform under one name.
Founded in 2014 by Madhusudanan R, Muthukumar A, and Prabhu R, M2P Fintech, also known as YAP, is an API infrastructure company. Currently, it enables over 200 businesses to embed financial products in their customer journeys in partnership with banks, and other institutions and claims to be EBITDA positive since FY20 with 30% month-on-month growth.
The startup supports rewards and instruments such as issuing gift cards, physical or virtual prepaid cards that its clients can customise for their user base. It also offers QR code solutions to payment companies.
M2P last raised a Series B round of $10 Mn led by Flourish Ventures and Omidyar Network. The startup has raised $15 Mn to date across funding rounds and counts BEENEXT, Better Capital and HNIs such as BharatPe’s Ashneer Grover, Indifi’s Alok Mittal, Pine Lab’s Amrish Rau and CRED’s Kunal Shah, among others.
According to Statista, the fintech sector has the highest number (2K) of startups in India and of the 2K fintech startups, payments, lending and wealth tech rounded the top three rankings in the country. Further, India is also home to approximately 1,263 digital lending startups, according to Inc42 Plus analysis, outlining the need for debt management and recovery verticals with the API segment.