[Update] M2P Fintech Secures INR 850 Cr From Helios Investment Partners, Nearing Unicorn Status

Update | September 24, 12:35 PM

M2P Fintech has announced the first close of its Series D financing, raising INR 850 Cr ($101 Mn) through a combination of primary and secondary deal, led by Helios Investment Partners. This funding round values the company at over INR 6,550 Cr ($783 Mn).

The funds will be used to strengthen M2P’s market leadership in India and expand its international presence, particularly in Africa. The round also saw participation from prominent banks across Asia, with existing investor Flourish Ventures increasing its stake, reflecting strong confidence in M2P’s innovative banking infrastructure that supports various financial institutions globally.

With this investment, M2P aims to accelerate growth by enhancing its technology stack, with a strong focus on artificial intelligence and advanced data capabilities. This will expand M2P’s core offerings and strengthen partnerships with financial institutions, enabling the delivery of innovative financial products.

The company is also looking to strategically expand into select ASEAN countries while further solidifying its presence in the Middle East, aligning with its vision to build a global banking technology infrastructure business.

Original Story | September 18, 11:15 AM

As fintech companies are fostering technological shifts, paving the way for the restructuring of the financial services ecosystem, Chennai-based M2P Fintech has kicked off discussions with a major private equity player for a fresh fundraise.

As per Arc, the B2B fintech startup is in talks with Helios Investment Partners to scoop up around $80 Mn in new funding round, a deal which is expected to include around $50 Mn (INR 419 Cr) and $30 Mn (INR 251 Cr) in primary and secondary infusions, respectively.

The report further said that the round is also expected to catapult M2P’s valuation to about $800 Mn (INR 6,704 Cr), close to a unicorn tag.

The startup is also looking to onboard more investors to its cap table, including its existing backers, in this round. 

M2P counts Insight Partners and Tiger Global among its marquee investors, who led its funding rounds in 2021. Additionally, Beennext, Flourish Ventures and Omidyar also hold significant stakes in the company, with the founders retaining over 40% control.

Founded in 2014 by Muthukumar A, Prabhu R and Madhusudanan R, M2P offers fintech API solutions to companies like slice, CRED, Ola and Razorpay. It offers a wide range of solutions across payments, lending and banking. 

It is pertinent to note that from the end of FY22 to mid-FY23, M2P raised new funds in several tranches as part of its Series C-1 round. The startup indicated it would use this capital to enhance its technology, grow its teams, and accelerate global expansion.

In September 2022, M2P received an investment of $2.7 Mn from American multinational financial service provider Visa.

The startup’s consolidated net loss more than tripled to INR 134.3 Cr in the financial year 2022-23 (FY23) from INR 40.1 Cr in the previous fiscal year, hurt by a sharp rise in a few expense buckets.

The startup’s bottom line was hurt despite an over 126% jump in operating revenue to INR 440.7 Cr during the year under review from INR 194.7 Cr in FY22.