M2P Fintech bags Rs 850crore funding, eyes expansion into African markets

CHENNAI: M2P Fintech has raised Rs 850 crore in Series D funding in a round led by UK-based Helios Partners along with Flourish Ventures and a few banks. The funding is a mix of primary and secondary share capital, with early stage investors like Beenext and 8i as well as some angels taking partial exits. The investment puts the startup’s value at Rs 6,550 crore.In 2022 January it received $56 million in Series C1 round.
It plans to build more artificial intelligence-based products focusing on customisation of banking products, underwriting and predicting defaults. The Chennai-based fintech will also use the funds to expand to the African markets with a new office in Kenya, apart from its existing bases in Egypt, Nigeria.
Speaking to TOI Madhusudanan R, CEO and co-founder said many existing products like small-ticket lending can be taken to markets similar to that of India. He said currently 40% of the revenue comes from international markets and the rest from India. UAE, Saudi Arabia, Egypt and Philippines are among its top markets.
He said a strategic partner like Helios, an Africa focused investment firm, can help access the market. He further added that the new set of growth will come from African markets and potential expansion into the US. M2P Fintech has recorded $60.8 million revenue and a loss of $16.7 million in 2023 financial year, as per Trakcn.
Madhusudanan said the startup plans to go for an initial public offering in the next two to three years. Founded in 2014, focusing on application program interface (API) layers for fintechs, it is now spread into building core banking tech including core banking, core lending suite, BNPL, credit and debit cards products.