M2P Fintech, a leading API infrastructure platform formerly known as Yap, has successfully raised Rs 417.5 crore ($50 million) in its latest funding round led by Taj Investment Holdings. This strategic investment marks Taj Investment Holdings’ first foray into India’s vibrant startup ecosystem.
The board of M2P Fintech has approved the issuance of Series D preference shares to facilitate the capital infusion, according to regulatory filings obtained from the Registrar of Companies (RoC). The Chennai-based company is now valued at approximately $800 million.
Expansion Plans and Financial Strategy
M2P plans to use the new capital to fuel its growth initiatives and meet its operational capital requirements. The funding will enable the company to expand its API infrastructure offerings globally and strengthen its partnerships with fintech businesses across various regions.
In line with its growth strategy, M2P has expanded its employee stock option pool (ESOP) by adding 38,700 new options, bringing the total ESOP pool to 1,29,140 stock options. Prior to this funding round, Beenext held the largest external stake at 10.23%, followed by Tiger Global at 9.22%, and Insight Partners at 6.44%. The co-founders collectively hold a 34.03% stake in the company.
About M2P Fintech
Founded in 2014, M2P Fintech provides API infrastructure solutions that enable businesses to deliver tailored financial services while ensuring regulatory compliance. The company operates across multiple countries, including Nepal, the UAE, Australia, New Zealand, the Philippines, Bahrain, and Egypt.
Backed by Tiger Global, M2P has made six strategic acquisitions, including Goals101, Syntizen, and BSG ITSOFT, to bolster its capabilities. In the previous financial year, M2P achieved significant revenue growth, doubling its operating revenue to Rs 440.7 crore, compared to Rs 194.74 crore in the prior year. However, the company’s losses also rose by 3.35 times to Rs 134.26 crore during the same period.
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Competitive Landscape
M2P Fintech faces stiff competition in the API infrastructure space from key players such as Setu (a subsidiary of Pine Labs), Signzy, and Decentro. As the company continues its expansion, this new investment positions M2P to further solidify its standing in the global fintech landscape.
