M2P Fintech’s FY24 Loss Stagnant At INR 133 Cr

After seeing a 3X year-on-year (YoY) jump in its net loss in the financial year ended March 2023 (FY23), B2B fintech startup M2P Fintech’s loss stayed flat in FY24. The startup posted a loss of INR 133.5 Cr in FY24, an increase of 0.15% from INR 133.3 Cr in the previous fiscal year.

However, this came at the cost of its top line. The startup’s operating revenue slipped 13.3% to INR 382 Cr in FY24 from INR 440.7 Cr in FY23. 

EBITDA loss during the year under review declined to INR 87.8 Cr from INR 108.9 Cr in FY23. Its EBITDA margin improved by 2 percentage points to -23% from -25% in the previous year. 

Founded in 2014 by Muthukumar A, Prabhu R, and Madhusudanan R, M2P provides banking, lending and payment solutions to banks, NBFCs, and online businesses. 

The startup’s income sources include revenue from API services, payment infrastructure contracts, and card processing services. It claims to serve more than 300 banks, 100 NBFCs and 800 fintech companies. Besides India, it has presence in 20 countries like the UAE, Egypt, Indonesia, and the Philippines. 

In September last year, the startup raised INR 850 Cr in its Series D round, which valued it at over INR 6,550 Cr ($751 Mn). M2P has raised a total funding of about $216 Mn to date from the likes of Tiger Global, Helios Investment Partners, and BEENEXT.

Earlier today, it was reported that M2P is in talks to acquire enterprise AI startup Mad Street Den.

Zooming Into M2P’s Expenses 

M2P’s total expenses declined 15.4% to INR 527.6 Cr in FY24 from INR 623.3 Cr in the previous year.

Employee Benefit Expenses: The startup’s spending on its employees jumped 33.46% to INR 251.3 Cr from INR 188.3 Cr in FY23.

Of the INR 251.3 Cr, it spent INR 200.9 Cr on salaries, while the rest was for ESOPs. 

Cost Of Materials Consumed: M2P was able to more than halve the expenses under this head to INR 156 Cr from INR 365.4 Cr in FY23.

Impairment Loss: The startup’s impairment loss increased a whopping 680% to INR 11.7 Cr from a mere INR 1.5 Cr in FY23.