API infrastructure platform M2P Fintech to raise $80 M at $900 M valuation: Report
According to three sources with knowledge of the situation, M2P Fintech (formerly Yap), an application programming interface (API) infrastructure platform, is nearing completion to secure a fresh funding round from both new and current investors.
After two and a half years, the Chennai-based company will enter a new round. In a $650 million (post-money) equity round headed by Insight Partners, it raised $56 million.
“M2P is closing a $80 million new round of funding led by a new investor. Existing investors including Insight Partners are likely to join the round,” said one of the sources requesting anonymity.
According to sources, the funds will be utilized, among other things, to strengthen the IT infrastructure and quicken the growth accelerator in markets outside of India.
For the uninitiated, M2P Fintech’s API allows companies to stay compliant with regulations while partnering with fintech companies to offer their own branded financial services. In addition to India, it also conducts business in a number of other nations, including Nepal, the United Arab Emirates, Australia, New Zealand, Bahrain, and Egypt.
“M2P will be valued at around $880 to $900 million (post-money) in the new round,” said another source requesting anonymity. “The company has already received the term sheet and the deal is set to be public soon.”
The company, backed by Tiger Global, has acquired six companies so far to bolster its offerings: BSG ITSOFT, Goals101, and Syntizen.
M2P has raised Rs 864 crore to date, according to startup data intelligence platform TheKredible. With a holding of more than 13%, Beenext is the company’s largest shareholder. Together, co-founders Madhusudhan R, Muthukumar A, and Prabhu R own 34% of the company.
Although M2P has not yet released its FY24 financials, its operating revenue increased 2.26 times to Rs 440.7 crore in FY23 from Rs 194.74 crore in FY22. Due to the growth, the company’s losses in FY23 increased by 3.35X to Rs 134.26 crore.
In the API infrastructure market, M2P Fintech is a leader, with other notable players including Setu, Signzy, and Decentro.
