Fintech

M2P Fintech Raises ₹850 Crore in Series D Funding Round Led by Helios Investment Partners

• ByStartupStory     |    September 24, 2024

Chennai-headquartered fintech startup, M2P Fintech, has successfully raised ₹850 crore in its Series D funding round, led by private equity firm Helios Investment Partners. This round includes both primary and secondary capital raises and values the company at approximately ₹6,500 crore, just shy of unicorn status.

Along with Helios Investment Partners, Flourish Ventures, a returning investor, and a few marquee banks in Asia also participated in this funding round. The round witnessed the exit of a few early angel investors, while the founders of M2P Fintech retained over a third of the company’s ownership post-raise. M2P Fintech last raised funding in 2022, securing around $50 million from US-based Insight Partners and others, which valued the startup at ₹5,000 crore at the time.

Strengthening Financial Tech and Expanding Globally

The fintech firm plans to use the newly acquired funds to bolster its financial technology infrastructure products and fuel its international expansion, with a particular focus on expanding its operations in Africa. In terms of product development, M2P Fintech aims to integrate Artificial Intelligence (AI) to enhance data analytical capabilities within its core offerings to the financial sector.

Speaking on their global aspirations, Madhusudanan R, CEO & Co-founder of M2P Fintech, stated, “As of financial year 2024, we had around 40 per cent of our revenue from global markets and we expect this to go up to 60-70 per cent in the next few years.” He further added, “Africa with its maturing financial ecosystem, growing smartphone penetration and financial inclusion efforts has a lot of parallels with India and presents a good potential for us.”

M2P Fintech has made significant inroads into global markets in recent years, with revenues already being generated from regions like Southeast Asia, the Middle East, and Africa. The company’s recent acquisition of Goals101, a data analytics and intelligence platform, marks a key step in offering data-driven personalization solutions to its clients.

Helios Investment Partners’ Strategic Involvement

With Helios Investment Partners leading the funding round, the fintech firm looks forward to accelerating its growth in the financial services sector. Elias Yazbeck, Managing Director, Financial Services and Fintech at Helios Investment Partners, expressed his confidence in the investment, stating, “Helios has a significant track record in growing fintech and financial services businesses on the continent, and this investment aligns with our strategy to invest in high-growth, tech-focused businesses.”

Building a Robust Fintech Ecosystem

Founded in 2014 by three friends, Madhusudanan R, Muthukumar A, and Prabhu R, M2P Fintech started as an API infrastructure company and has since evolved into a major financial technology player, powering the digital stacks of banks, fintech firms, and consumer tech companies. The company’s suite of offerings includes core banking systems, lending solutions, Buy Now Pay Later (BNPL) products, as well as Credit, Debit, and Prepaid card solutions. It also supports UPI and other financial products.

M2P Fintech employs around 1,300 people, with 50% of its workforce based in Chennai. As part of its growth plans, the company is exploring the possibility of establishing smaller satellite offices across Tamil Nadu to tap into talent beyond Chennai.

“We are exploring setting up smaller satellite offices across Tamil Nadu to tap talent beyond Chennai,” Madhusudanan added.

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