Chennai-based fintech platform YAP has raised INR 10 Cr in an angel funding round. The parent company of YAP, M2P Solutions, has raised this money from former PayU India CEO Amrish Rau, founder of Jupiter Jitendra Gupta, founder of Cred Kunal Shah, venture capitalist of 8i Ventures Vikram Chachra, FinTech MeetUp’s Abhishant Pant, and Karbon’s Peifu Hsieh.
With the recently raised funds, cofounder of YAP Madhusudanan R said that the company is looking for an expansion in Asia. The funds will also be used to expand the team and develop new banking products for fintech startups. As part of this deal, Rau will also join the board of M2P Solutions.
Founded in 2014, the YAP helps fintech startups to rapidly develop and roll out their own payment solutions. The startup offers financial solutions such as issuing git cards, physical or virtual prepaid cards that its clients can provide to their users. The startup also offers QR code solutions to its clients.
YAP has partnered with banks such as Yes Bank, DCB Bank, Equitas SFB, and SBM Bank for the API platform it offers to its clients. Some of the clients which use YAP’s API platform include Ola, Cred, Bank Open, Niyo, Redcarpet, Slice, among others.
The startup claims that it has processed payments over $2 Bn last year. It also claims to have processed over 50 Mn transactions which is a growth of 300% as compared to the previous year. YAP said that it will also utilise the funding to add more fintech clients.
According to a report by NITI Aayog — Digital Payments (2018 edition), India’s digital payments industry is estimated to grow to $1 Tn by 2023. The report also highlighted that the value of digital payments will likely jump from the current 10% to over 25% by 2023.
Moreover, with the introduction of UPI in the digital payments space, the Indian fintech sector has been going through a transformation phase along with the growing internet penetration.
With this burgeoning growth in the fintech segment, investors have started to remain bullish on startups working in this segment. Earlier this month, fintech startup SuperMoney raised $1 Mn in Pre-Series A funding from early-stage investor Unitus Ventures.
Prior to this, serial entrepreneur, Shailaz Nag’s new startup Dot had raised $8 Mn in seed funding. Dot is a technology startup, providing novel digital transformation and commerce solutions to brick and mortar outlets.