M2P raises acquisition capital with Rs 850 cr funding from companies like Helios

M2P Fintech founder and chief executive officer (CEO) Madhusudanan R. says the company is raising funds for acquisitions after the software-as-a-service (Saas) startup raised funds $It raised Rs 850 crore in a funding round led by Helios Investment Partners, half of which will be used to acquire companies.

“We need to focus on some markets where we may need to intervene to contribute faster. This may result in higher investment or cash allocation. I estimate that more than half of the funds will be used to acquire companies,” Madhusudanan said Mint.

The financing, which includes junior and secondary stock sales, currently values ​​the company at more than $65.5 billion rupees. Flourish Ventures, an existing investor in M2P, also participated in the round.

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The Chennai-based company, which provides software services to banks, is looking for acquisitions to expand its business in India and overseas, with a focus on Africa.

Founded in 2014 by Muthukumar A., ​​Prabhu R. and Madhusudanan, M2P is an API (application programming interface) infrastructure company that has grown into a banking-as-a-service provider for banks, lenders, fintech and consumer technology companies company.

“In 2024, nearly 60% of our revenue will come 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 about 40%,” Madhusudanan said.

He added that while international revenue is growing faster, India is a huge market and will continue to be a revenue driver for the company.

The company also plans strategic expansion into selected countries in the Association of Southeast Asian Nations (ASEAN) region and the Middle East. M2P Fintech operates in more than 30 markets across the Asia Pacific, Middle East and North Africa (MENA) and Oceania regions.

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To date, M2P Fintech has raised nearly $200 million from investors including Tiger Global, Better Capital and MUFG Innovation Partners, the corporate venture capital arm of Mitsubishi UFJ Financial Group.

The company offers 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 revenue surges to $440.7 billion in FY23 $19,474 crore in FY22, and $41.89 crore in FY21. However, the company’s losses more than tripled $134.26 million in FY23 $400.8 crore in FY22.

“The first two quarters of FY24, we lost money. The next two quarters, we made money again. So, on a full-year basis, FY24 continues to be a loss, but we expect to be profitable in FY25, or At least cash profitability increases,” said Madhusudanan.