M2P Fintech to raise $80 Mn at $900 Mn valuation

M2P Fintech, formerly known as Yap, is on the brink of closing a new funding round, which would mark a significant step forward for the Bengaluru-based API infrastructure platform. According to sources familiar with the matter, the company is set to secure approximately $80 million, led by a new investor, with participation from existing backers, including Insight Partners. This round comes after a hiatus of two and a half years since the last funding, which saw M2P raise $56 million at a post-money valuation of $650 million.

The fresh capital injection will reportedly push M2P’s valuation to around $880 to $900 million post-money. The funds are earmarked for enhancing the company’s tech infrastructure and accelerating growth both within India and in international markets, including regions like Nepal, the UAE, Australia, New Zealand, the Philippines, Bahrain, and Egypt.

M2P Fintech specializes in providing API solutions that allow businesses to integrate branded financial services, ensuring compliance with regulatory standards. This capability is critical for fintech companies looking to offer a variety of financial products and services without developing the necessary infrastructure from scratch.

The company’s growth trajectory has been marked by several strategic acquisitions, including the purchase of Goals101, Syntizen, and BSG ITSOFT, aimed at bolstering its service offerings. M2P’s impressive revenue growth—from Rs 194.74 crore in FY22 to Rs 440.7 crore in FY23—has, however, been accompanied by increased losses, which rose to Rs 134.26 crore in the same period. This reflects the company’s aggressive expansion strategy and investment in scaling its operations.

As of now, M2P Fintech has raised a total of Rs 864 crore, with its largest stakeholder, Beenext, holding over 13% of the company’s shares. The co-founders Madhusudhan R, Muthukumar A, and Prabhu R collectively own 34%.

M2P Fintech is a key player in the API infrastructure space, competing with other firms like Setu, Signzy, and Decentro. The expected funding round will likely further solidify its market position and support its ambitious growth plans.

Source: entrackr.com

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