B2B FinTech Startup M2P Solutions’ FY23 Loss Triples, Reaches INR 134 Cr

M2P fintech Logo

Three points you will get to know in this article:

  • Employee costs surged by 223.5% to INR 188.3 Cr from INR 58.2 Cr in FY22.
  • Startup’s profit suffered despite a 126% revenue increase to INR 440.7 Cr in FY23.
  • M2P’s expenses rose by 155% to INR 623.3 Cr in FY23.

Introduction to M2P Fintech

M2P Fintech is a company founded in 2014 that specializes in embedding fintech solutions within core business offerings. They serve as a reliable tech intermediary bridging banks, fintech companies, and financial institutions. M2P’s mission is to help businesses co-create innovative financial solutions and provide cutting-edge financial services globally. The company’s leadership team consists of industry experts passionate about fintech and committed to excellence and innovation. They have a global presence with offices in various locations such as Chennai, Mumbai, Bengaluru, Hyderabad, Delhi, Abu Dhabi, Cairo, Jakarta, Manila, and Vietnam. M2P fosters a vibrant workplace culture that values learning, diversity, and a shared vision of perfection and excellence. 

Financial Performance Overview

M2P Solutions, a B2B fintech startup, saw its combined net loss soar to INR 134.3 Cr in the fiscal year 2022-23 (FY23), marking a significant increase from INR 40.1 Cr in the preceding financial year. This surge in losses was primarily attributed to a notable uptick in certain expenditure categories.

Despite experiencing a remarkable 126% surge in operational revenue to INR 440.7 Cr during the aforementioned period, up from INR 194.7 Cr in FY22, the startup’s overall financial performance was adversely affected.

Established in 2014 by Muthukumar A, Prabhu R, and Madhusudanan R, M2P specializes in providing fintech API solutions to renowned companies such as slice, CRED, Ola, and Razorpay. Its comprehensive array of offerings spans across payments, lending, and banking sectors.

The startup generates income from various sources such as revenue from API services, payment infrastructure contracts, and card processing services. In addition to operating in India, it also operates in international markets such as the UAE, Egypt, Indonesia, and the Philippines.

In the fiscal year 2023, M2P’s total revenue, including interest income and other non-operating income, amounted to INR 487.9 Cr, compared to INR 204 Cr in the previous fiscal year.

Funding and Additional Investments

It is worth mentioning that between the end of the fiscal year 2022 and mid-fiscal year 2023, M2P secured additional funding as part of its Series C-1 round in multiple installments. The company announced its intention to utilize the capital to enhance its technology, grow its teams, and expedite its global expansion efforts.

In September 2022, M2P received a $2.7 million investment from the American multinational financial services provider, Visa.

Rising Expenses and Allocations

M2P’s total expenses in FY23 were INR 623.3 Cr, which was a significant increase of nearly 155% from the previous year’s expenses of INR 244.6 Cr.

Employee benefit expenses for the startup experienced a significant increase of 223.5% to INR 188.3 Cr in the fiscal year under review, up from INR 58.2 Cr in FY22.

Of this amount, M2P allocated INR 145.2 Cr towards salaries and wages, marking a 187.2% year-on-year increase. Additionally, the startup also dedicated INR 29.1 Cr towards employee share-based payments in FY23.

In the past fiscal year, M2P’s expenditures in this area soared by an impressive 118%, reaching INR 365.4 Cr compared to the previous year’s INR 167.4 Cr. Notably, the company allocated INR 22 Cr towards legal expenses, marking a significant 262% increase year-on-year.

Amidst this growth, M2P remains dedicated to enhancing its technological infrastructure. Recently, it made headlines by acquiring Goals101, a prominent big data analytics and intelligence platform, through a combination of cash and equity, with a valuation of approximately INR 250 Cr (approximately $30 Mn).

Top of Form

M2P Solutions, a B2B fintech startup, experienced a notable surge in combined net loss to INR 134.3 Cr in FY23, attributed to increased expenses despite a 126% surge in operational revenue. Established in 2014, the company specializes in providing fintech API solutions, operating in India and international markets. It secured additional funding in FY23 and received a significant investment from Visa. However, total expenses soared to INR 623.3 Cr, with substantial increases in employee benefits and legal expenses. M2P remains dedicated to technological enhancement, exemplified by its acquisition of Goals101, a big data analytics and intelligence platform.

Karan Balodi

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