Application Programming Interface (API) infrastructure company M2P Fintech has raised $56 million in a Series C1 round led by New York-based venture capital firm Insight Partners with participation from MUFG Innovation Partners, a CVC company of Mitsubishi UFJ Financial Group, Inc. (MUFG).
Existing investors Tiger Global and Better Capital also participated in the round. This is the company’s third fundraise in less than a year and takes its valuation to $600 million, up from the $335 million valuation during its Series C round in October 2021.
It plans to use the funds to fuel its international expansion, launch other peripheral financial products such as rewards and loyalty, as well as acquire new startups, while bolstering its team size.
“We have 3-4 distinct cohorts of customers that we work with. This includes top tier as well as small-banks where we help them repurpose their technology stack. We also work with lending fintechs including Slice, Uni to help them go-to market faster, and large consumer internet companies such as Swiggy and Ola to embed new financial products,” said Madhusudanan R, co-founder and chief executive of M2P Fintech.
Founded in 2014 by Madhusudan, Muthukumar A, and Prabhu R, the platform provides application programme interface (API) solutions to banks and financial technology companies to develop products around bank accounts and term deposits, in addition to a range of digital payment modes including debt, credit, prepaid, QR, UPI, and toll payments.
The company said over 500 fintech firms, banks and other financial institutions use M2P’s application programming interface (API) infrastructure to embed financial products. In the past year, M2P claims it has witnessed widespread adoption of its buy now, pay later (BNPL) and programmable credit card stack that allows BNPL companies to gain access to visa Credentials.
M2P has a market presence in India, Nepal, the United Arab Emirates, Australia, New Zealand, the Philippines, Bahrain, and Egypt. The company plans to further expand its footprint to Indonesia, Bangladesh, Vietnam, and across the Middle East and North Africa (MENA) region.
“M2P is India’s leading fintech infrastructure-as-a-service company – they knit together the broadest set of banking and fintech relationships in the market and have built powerful products delivered as an API with a strong commitment to customer service,” said Nikhil Sachdev, Managing Director at Insight Partners in a statement.