Venture Capitalist firm 8i Ventures Completely Exits M2P Fintech, Bags 12x Returns

8i Ventures, an early-stage venture capital firm, has fully exited its investment in M2P Fintech, resulting in a spectacular 12x return on initial cash.

The firm first invested Rs 9.7 crore in the fintech startup in January 2020, and the latest exit resulted in a total return of Rs 115.9 crore.

This departure was part of M2P Fintech’s recent $100 million capital offering, which included both main and secondary deals.

“We got an opportunity to return the capital to our investors, and our limited partners are getting more capital than what they invested” said 8i Ventures.

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Founding Partner Vikram Chachra described the investment as a huge success for the firm.

8i Ventures decided to invest in M2P Fintech in 2020 because it believes in the company’s aim of creating a global Banking-as-a-Service (BaaS) platform.

M2P Fintech was worth approximately $9 million when the initial investment was made. Today, the startup’s valuation has risen to almost $600 million, allowing 8i Ventures to produce a 131% internal rate of return (IRR), converting the initial investment into a hefty payout.

Chachra discussed how M2P Fintech grew from a card-issuing platform to a larger BaaS provider, supporting not only neo-banks but also small finance banks in India.

The fintech currently offers a wide range of services, including core banking, loan origination, and card issuing, which has significantly increased its value.

In April 2022, 8i Ventures announced a partial pullout from M2P Fintech. The current pullout represents the firm’s entire withdrawal from the company, which has been one of 8i Ventures’ most successful investments.

The firm’s initial fund, Fund I, allocated only 10% of its Rs 100 crore corpus to M2P investments, but the exit earned 1.27 times the fund’s total corpus.

This withdrawal contributes to Fund I’s overall exceptional performance, which has grown 2.5x and yielded a 37% IRR. This fund also invests in firms like Slice, Easebuzz, and Blue Tokai.

M2P Fintech’s CEO and Co-founder, Madhusudanan R., thanked 8i Ventures for their support throughout the company’s growth phases, noting, “8i was the first venture capital firm to believe in M2P Fintech’s concept… They have backed us through all investment rounds, from seed to Series B. For us, they are more like co-founders than investors.”