Funding Alert

M2P Fintech in talks to close new round at over $600 million valuation with Insight Partners

• ByStartupStory     |    October 19, 2021

M2P Fintech, which provides digital banking infrastructure to fintech and internet companies, is in talks with leading venture capital fund Insight Partners for a new round of funding likely to value it at more than $600 million, experts said. 

If the financing is successful, the valuation of M2P Fintech is expected to double to $335 million now, within weeks,  people said. 

Last week, M2P Fintech announced a tour led by New York-based investment firm Tiger Global, signalling the frenetic negotiations between Indian startups — especially in sectors like fintech where companies are raising back-to-back funding. in a few months. 

“What works for M2P Fintech is the revenue it has been able to generate. They have grown four times in the last year and are on track to hit $20 million in revenue. Insight is in the final stages of negotiations to lead the funding round,” sources told ET. New York-based 

Insight Partners has supported startups such as Apna.co, BharatPe, Chargebee, BrowserStack and Atlan as it increasingly looks to the Indian tech market. 

As talks with M2P Fintech have progressed, Insight has also been in talks with several other fintech startups at various stages, sources familiar with the matter told ET. 

Fundraising talks at M2P Fintech reflect broader investment activity in the Indian startup ecosystem, which has contributed to the birth of 31 new unicorns this year. Unicorns are private companies worth $1 billion or more. 

PwC India says in a report published Monday that $4.6 billion was invested in the Indian FinTech sector in the first nine months of this year.

Compared to the same period a year ago, this is almost a  fourfold increase. 

Founded in 2014 by Madhusudanan R, Muthukumar R and Prabhu Rangarajan, M2P was nominated in the Top Innovator category at the Economic Times Startup Awards 2019. It includes Beenext Pte, Flourish Ventures, Omidyar Network India, 8i Ventures, Better Capital and the DMI The group’s Sparkle Fund among existing investors. Last week, M2P Fintech said the platform processes more than $10 billion in annual payments with more than 500 fintech partners. 

The startup wants to expand beyond Asia employing a new capital injection. In addition to India, it operates in Nepal, the United Arab Emirates, Australia, New Zealand, the Philippines and Egypt.

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