Taj Investment Holdings Injects $50 Mn Into M2P Fintech

M2P Fintech, once known as Yap, has secured Rs 417.5 crore (50million) from a new investor, TajInvestment Holdings. The company′s board has approved the issuance of SeriesD preference shares for this amount. M2P intends to use these funds to expand its operations and meet its day−to−day financial requirements. According to our report, headquartered in Chennai, is currently valued at approximately 800 million following the allocation of these funds. It’s worth noting that Taj Investment Holdings has not previously invested in any Indian startup prior to M2P. We’ve contacted M2P for their input and will include any response in the story.

Related: Financing Startup Veefin Purchases 26% Stake in EpikIndifi Through a Share Swap Deal

Furthermore, M2P has expanded its employee stock option pool (ESOP) by introducing 38,700 new options, raising the total ESOP pool to 1,29,140 employee stock options, as outlined in a separate resolution filed by the company.

Before this funding round, M2P’s biggest external shareholder was Beenext, owning 10.23% of the company, followed by Tiger Global with 9.22%, and Insight Partners with 6.44%. The co-founders Muthukumar Ayyakannu, Prabhu Rangarajan, and Madhusudanan R together possess 34.03% of the company. M2P Fintech was reportedly in discussions for an 80 million round,with ananticipated 30 million coming from secondary sales.

M2P Fintech helps businesses create their own financial services using its specialized technology, allowing partnerships with fintech firms while following financial regulations. The company works in various countries like Nepal, UAE, Australia, New Zealand, the Philippines, Bahrain, and Egypt. With support from Tiger Global, M2P has acquired six companies so far, such as Goals101, Syntizen, and BSG ITSOFT.

During FY23, M2P recorded a significant increase in operating revenue, jumping 2.26 times to reach Rs 440.7 crore, up from Rs 194.74 crore in FY22. However, its losses also rose by 3.35 times, reaching Rs 134.26 crore in FY23. The company is yet to submit its FY24 results. In the competitive space of API infrastructure, M2P Fintech competes with rivals such as Setu, owned by Pine Labs, along with Signzy and Decentro.

M2P Fintech, previously Yap, has secured Rs 417.5 crore from Taj Investment Holdings, intending to expand operations and meet financial needs. Following this funding, the company’s valuation stands at approximately 800 million. Notably, Taj Investment Holdings is a new investor in the Indian startup scene. M2P expanded its ESOP and was in discussions for a significant funding round. Despite impressive revenue growth in FY23, reaching Rs 440.7 crore, the company also saw increased losses. Operating in API infrastructure, M2P competes with firms like Setu, Signzy, and Decentro.