After Wizi, Origa AI, M2P Fintech Acquires Cloud Lending Startup Finflux

Fintech SaaS startup M2P Fintech has acquired Finflux, a Bengaluru-based cloud lending platform. Finflux becomes the third acquisition by M2P after it acquired two fintech startups in September 2021.

The startup did not reveal the financial details of the deal.

With the acquisition of Finflux, M2P will accelerate the adoption of digitisation and workflow automation and offer new lending products.

Finflux’s cloud lending platform offers services such as loan origination and management, co-lending, buy now pay later (BNPL), marketplace integration, app-based lending, optional data-based credit scoring and analytics.

The Bengaluru-based startup also provides flexible underwriting rules, rule-based automation of workflows, tiered market-checkers, and customisable approvals. Finflux serves more than 60 clients across 15 countries, and more than 12 Mn borrowers.

Nayan Ambali, founder & CEO of Finflux, said, “We are excited to join the M2P team. With this acquisition, we move closer to our mission of enabling 100 million borrowers. With M2P’s network and resources, we will be able to better serve our existing customers, reach a wider market, expand into different geographies and create new technology product experiences.”

Founded in 2014 by Madhusudanan R, Muthukumar A and Prabhu R, M2P Fintech is a fintech SaaS startup providing fintech API solutions to companies. These solutions enable businesses to include embedded finance into their products, partnering with banks and NBFCs. It serves the likes of slice, CRED, Ola and Razorpay.

Madhusudhanan R, the cofounder of M2P Fintech, said, “The credit utilization story in India is at a critical juncture, and we believe that there will be an opportunity for customizable cloud-ready platforms with a role of micro-elements.” 

“Our core services in BNPL and neocredit products will be fueled by Finflux’s platform as we embark on a mission to digitize the lending environment,” he added.

M2P Fintech has made a total of three startup acquisitions including Finflux. In September 2021, the fintech startup acquired two fintechs, credit card sourcing startup Wizi and loan recovery SaaS startup Origa AI. It also invested around $4 Mn in payments startup LivQuik Technology.

The Tamil Nadu-based startup, M2P Fintech had raised $56 Mn in a funding round in January 2022, after raising $100 Mn in 2021 alone. 

M2P claims that more than 500 fintechs and tens of banks and NBFCs use its API infrastructure to enable embedded finance. It also claims to operate in more than 20 markets across Asia and North Africa.

Fintech SaaS is one of the fastest-growing opportunities within the larger fintech ecosystem, growing at 40% CAGR between 2021 and 2025 to reach a total market opportunity of $12.6 Bn in India by 2025, according to an Inc42 report.