Chennai-based M2P Fintech raises Rs 35Cr in debt financing led by Anicut Capital

M2P Fintech, a Chennai-based digital banking infrastructure startup, has reportedly raised Rs 35 crore in debt funding from Anicut Capital. 

The board at M2P Fintech has passed a resolution to issue 350 NCD (non-convertible debentures) at an issue price of Rs 10,00,000 each to raise Rs 35 crore, Entrackr reported, citing regulatory filing sourced from RoC shows.

Previous funding rounds

In January 2022, M2P Fintech raised $56 million in funding at a pre-money valuation of $549 million. The Series C round saw participation from US-based Tiger Global Management, MUFG Innovation Partners, Insight Partners, and Better Capital. 

It is also backed by DMI Alternative Investment Fund, Utsav Somani Investments, Omidyar Network India, and Visa, among others. 

What does M2P Fintech do?

Since its inception in 2014, M2P Fintech has been providing a comprehensive suite of financial services. These include a core banking and loan management system, payment tools, and embedded finance solutions, along with various value-added services for fintechs and banks. 

Payment solutions are a major revenue earner for the company, accounting for 60% of its income. The rest is derived from its core banking business and other value-added services (VAS).

Expansion through acquisitions

M2P has strategically expanded its API infrastructure through acquisitions, having acquired six companies to date, including Goals101 and Syntizen, cloud-based core banking system BSG ITSOFT, Wizi, Finflux, and debt recovery startup Origa.ai. 

In December 2023, The fintech startup acquired Goals101, specializing in transaction behavioural intelligence, for Rs 250 crore in cash and equity. 

While the company is yet to file its FY23 financial results, its revenue saw a significant uptick in FY22, jumping 4.6 times to Rs 194 crore. However, this period also saw its losses increase by 6.2 times to Rs 41 crore.