M2P Fintech, a payments infrastructure startup that has established market dominance in India, has raised $56 million in a new financing round, less than three months after closing its previous funding.
Insight Partners is a New York-based private equity and venture capital firm. Existing investors Tiger Global and Better Capital also participated in the ongoing round.
M2P has nearly doubled its valuation in just three months thanks to the new round.
M2P Fintech has two core offerings. It helps financial institutions that have regulatory licenses but need help with tech to launch banking services.
They upgrade their tech stack with us. The co-founder and chief executive of M2P Fintech said in an interview that banks are transitioning from being capex heavy product implementation model to opex, a kind of model.
Scores of tier 1 as well as fast-emerging fintech-friendly banks are customers of M2P Fintech, which is helping them power their new-generation services.
The startup's second marquee offering is providing the payments layer to hundreds of fintech startups with card offerings to manage their entire money flow. If a startup wants to launch a new offering, they may want to work with a few banks. They will need to build their own pipelines to use the banks' APIs. They can work with M2P Fintech, which already has railroads in place.
M2P Fintech was co-founded by Muthukumar A, Madhusudanan R, and Prabhu R. The images are from M2P Fintech.
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 delight, said Nikhil Sachdev, Managing Director at Insight
M2P has established itself as a clear market-leader that is transforming financial innovation in the region. As they continue to scale up, we are excited to partner with them.
Today, the startup operates in nearly two-dozen markets in Asia and North Africa. Many of the product features that are popular in India will be made available in the startup's new markets.
He said that a lot of action that is happening in India is being replicated in other markets.
It is looking for acquisition opportunities to fuel growth in adjacent categories. He said that the startup, which acquired two startups last year, is currently looking to acquire more than half a dozen more.
M2P Fintech is currently in a unique position. It has little to no competition and is a direct beneficiary of the fierce battle among the new entrants in the field.
In the next few years, he hopes that more players will emerge in India and other Asia markets. There is room for three to four billion dollar companies in the space, he said.
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