Chennai-based M2P Fintech raises $35 million in Series C funding led by Tiger Global Management

Chennai-based M2P Fintech, previously known as Yap, today announced that it has raised $35 million in Series C funding led by Tiger Global Management.

The funding round also saw the participation of existing investors BEENEXT, Flourish Ventures, Omidyar Network India, 8i Ventures, Better Capital and the DMI Group via its investment vehicle Sparkle Fund.

Currently, M2P has a market presence in India, Nepal, the United Arab Emirates, Australia, New Zealand, the Philippines, Bahrain and Egypt. The company intends to use the fresh funds to enhance its Application Programming Interface (API) infrastructure capabilities and expand its reach beyond Asia

“We are delighted to have the backing of Tiger Global Management. Having built an API ecosystem for unlocking the latent fintech potential in emerging markets, we believe the time is ripe for us to export the capabilities from India to other parts of the world,” said Madhusudanan R, Co-founder and CEO M2P Fintech.

Madhusudanan R, Co-founder and CEO M2P Fintech

Founded in 2014, the Chennai-based fintech was bootstrapped till early 2020. In February 2020, M2P raised ₹ 10 crore in seed funding from Amrish Rau, Kunal Shah, and others which was followed by a $4.50 million Series A funding round in July 2020 led by Beenext. In February 2021, M2P raised $10 million in Series B round.

“We were bootstrapped for the first five years. We were quiet and frugal, but we noticed that our product appeal was not just limited to India but portable to any other part of the world. That’s when we realised that by being bootstrapped, we were limiting ourselves because when you go to global markets, they look at investor backing, team size and so on. So, we realised that having capital will help us to grow faster,” Madhusudanan told BusinessLine .

M2P allows businesses to quickly create and deploy fintech products by simplifying the partnerships with Banks, PPIs, FIs, and other regulated entities.

“Our immediate focus is to double down on growth in India and the expansion of our team in Dubai, where we have committed to invest more than AED 100 million over the next 18-24 months. We are also aggressively pursuing organic and strategic opportunities that will strengthen our product capabilities to better serve our customers," said Madhusudanan.

Acquisition

Last week, M2P acquired Origa.ai, a Bengaluru-based Software as a service (SaaS) technology platform that allows both fintech and traditional lenders to manage their collections operations. A week prior to that, it acquired Chennai-based credit card focussed fintech Wizi.

“The way banks are buying technology is changing rapidly and there is a lot more accelerated adaptation to platforms like us. Therefore, we have to go aggressively into markets where we have no presence,” Madhusudanan said, adding, “we would be a pan-Asia company by end of the next year so a lot of money will go into team building, growing in newer markets and to acquire companies that are complementary to our business.”

“The M2P platform is enabling this shift, and many of the leading fintech companies have already chosen to work with them. We are excited to partner with Madhu and the rest of the team as they continue to expand the platform and deliver for customers,” Alex Cook, Partner, Tiger Global Management said in a press release.

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