API infrastructure platform M2P Fintech, formerly known as Yap, is nearing the completion of a new funding round involving both new and existing investors, according to sources familiar with the matter.
This new round marks the first major investment for the Bengaluru-based company in over two and a half years. Previously, M2P Fintech raised $56 million in an equity round led by Insight Partners, achieving a post-money valuation of $650 million. The upcoming funding round is expected to raise $80 million, led by a new investor, with participation from existing investors like Insight Partners.
The fresh capital will be used to enhance the company’s technological infrastructure and accelerate growth in both domestic and international markets. M2P Fintech’s API platform enables businesses to offer branded financial services through partnerships with fintech companies, ensuring regulatory compliance. The company operates in multiple countries, including Nepal, UAE, Australia, New Zealand, the Philippines, Bahrain, and Egypt.
With the new funding round, M2P Fintech’s valuation is projected to be between $880 and $900 million post-money. The company has already received the term sheet, and the deal is expected to be announced publicly soon.
To date, the Tiger Global-backed firm has acquired six companies, including Goals101, Syntizen, and BSG ITSOFT, to strengthen its offerings. According to data intelligence platform TheKredible, M2P Fintech has raised approximately Rs 864 crore so far. Beenext is the largest shareholder with over 13% ownership, while co-founders Madhusudhan R, Muthukumar A, and Prabhu R collectively hold 34% of the company.
Although M2P Fintech has not yet disclosed its financial results for FY24, its operating revenue surged 2.26 times to Rs 440.7 crore in FY23 from Rs 194.74 crore in FY22. This growth also led to a 3.35 times increase in losses, amounting to Rs 134.26 crore in FY23. M2P Fintech remains a leader in the API infrastructure sector, competing with notable players such as Setu, Signzy, and Decentro.
