M2P Fintech Raises ₹650 Crore in Series D Funding, Eyes Expansion and Acquisitions

M2P Fintech raises Rs 650 crore in series D, valuation at Rs 6,550 crore

Banking infrastructure company M2P Fintech on Tuesday raised Rs 650 crore through a mix of primary and secondary capital as part of its series D financing round. The funding round was led by Helios Investment Partners, valuing the company at over Rs 6,550 crore. Existing investors, including Flourish Ventures, participated in the funding round. Click here to connect with us on WhatsApp The capital raised in the latest funding round will be utilised to strengthen its operations in India and grow its international footprint, particularly in Africa, the company said. "Africa now stands as the company's next major growth frontier, presenting vast potential due to the continent's rapidly evolving financial ecosystem. With rising smartphone adoption and the increasing prominence of mobile-led financial services delivery, M2P is well-positioned to capitalise on this opportunity," the company said in a statement. The firm is looking to expand into select countries in the Asean (Association of Southeast Asian Nations) region. It added that it aims to cement its presence in West Asia. "We're thrilled to partner with Helios, whose deep understanding of the African market, coupled with our powerful platform capabilities, will position us well to deliver on our mission of fostering financial inclusion and innovation," said Madhusudanan R, co-founder and chief executive officer (CEO), M2P Fintech. More From This Section L&T wins Rs 10K-15K cr power transmission, distribution orders in West Asia OYO estimates Ebidta to cross Rs 2,000 cr in FY26 with Motel 6 acquisition India at cusp of digital renaissance, responsible AI key: IBM India MD RPower seeks shareholders' nod to raise Rs 1,525 cr via preferential issue JSW group moves Rs 40,000 crore EV initiative to Maharashtra from Odisha Established in 2014, the company operates in over 30 markets across the Asia-Pacific, Middle East and North Africa (MENA), and Oceania regions. The company claims that its offerings enable services for over 200 banks, 300 lenders, and more than 800 fintechs. Its technology stack powers the core banking system, core lending suite, buy-now-pay-later (BNPL), credit, debit, and prepaid cards, and Unified Payments Interface (UPI). "Helios has a significant track record in growing fintech and financial services businesses on the continent, and this investment aligns with our strategy to invest in high-growth, tech-focused businesses," said Elias Yazbeck, managing director, financial services and fintech, Helios Investment Partners. Also Read Fintech firm MobiKwik gets Sebi approval to raise Rs 700 crore through IPO Premium Banker's Trust: All you want to know about SROs in finance sector Capital A launches Rs 400 cr fund to target manufacturing, climate startups Premium 'Unsecured credit growth slows but demand remains strong': Fibe co-founder Sachin Bansal's Navi becomes sixth largest UPI player, overtakes Amazon Pay

M2P builds war chest for acquisitions with ₹850 cr funding from Helios, others | Mint

The fundraise, a mix of a primary and secondary share sale, now values the company at over ₹6,550 crore. M2P's existing investor Flourish Ventures also participated in the round. M2P Fintech is building a war chest for acquisitions, founder and chief executive officer (CEO) Madhusudanan R. said, after the software-as-a-service (Saas) startup raised ₹850 crore in a funding round led by Helios Investment Partners, half of which would go towards buying companies. "We need to look at some markets where we may need to intervene to contribute more quickly. This could lead to higher investment or cash deployment. I would estimate that more than half of the money will be allocated for acquiring companies," Madhusudanan told Mint. The fundraise, a mix of a primary and secondary share sale, now values the company at over ₹6,550 crore. M2P's existing investor Flourish Ventures also participated in the round. Also read | M2P Fintech acquires Goals101 for ₹250 crore The Chennai-based company, which provides software services to banks, is looking for acquisitions to expand its business both in India and overseas, with a focus on Africa. Founded in 2014 by Muthukumar A., Prabhu R., and Madhusudanan as an API (application programming interface) infrastructure company, M2P has evolved into a banking-as-a-service company for banks, lenders, fintech and consumer technology companies. "In 2024, we generated close to 60% of our revenue from India and about 40% from the rest of the world. Over the next two to three years, we expect India to remain a key market, contributing significantly at about 40%," said Madhusudanan. He added that while international revenues are growing faster, India is a large market and will continue to lead as a revenue driver for the company. The company is also eyeing strategic expansions into select countries in the Association of Southeast Asian Nations (Asean) region and the Middle East. M2P Fintech operates in over 30 markets across the Asia Pacific, Middle East and North Africa (MENA), and Oceania regions. Also read | M2P fintech acquires credit card focussed startup Wizi M2P Fintech has so far raised close to $200 million from investors like Tiger Global, Better Capital and MUFG Innovation Partners, a corporate venture capital arm of Mitsubishi UFJ Financial Group Inc (MUFG). The company provides services across core banking systems; core lending solutions; BNPL (buy now, pay later); credit, debit and prepaid cards; UPI and advanced data capabilities, among others. With the new investment, M2P aims to expand its technology stack and introduce artificial intelligence solutions. M2P Fintech's revenue soared to ₹440.7 crore in FY23 from ₹194.74 crore in FY22, and ₹41.89 crore in FY21 . The company's loss, however, more than tripled to ₹134.26 crore in FY23 from ₹40.08 crore in FY22. "In FY24, in the first two quarters, we lost money. In the next two quarters, we made money again. So, overall for the full year, FY24 continues to be loss-making but FY25 is when we expect to see profitability, or at least an increase in cash profitability," said Madhusudanan.