M2P Fintech is a payments infrastructure startup based in India. With its two major offerings, the startup provides assistance for banks and financial institutions that want to harness tech to launch banking services. The startup was founded in 2014 by Madhusudanan R, Muthukumar A and Prabhu R and was formerly known as Yap.
M2P Fintech has raised $56 million in a Series C funding round that follows about three months after its last round. The funding round was led by New York-based Insight Partners and saw the participation of MUFG Innovation Partners, Tiger Global and Better Capital. The new funding round brings the startup’s valuation to $605 million, almost double in value from its last funding round.
Speaking on its usefulness to financial institutions, co-founder and CEO Madhusudanan R said “We also help them upgrade their tech stack. There’s a movement underway as banks are transitioning from being CAPEX-heavy product implementation model to OPEX, SaaS-kind of model”.
The startup already has financial institutions ranging from banks and fintech under its radar and is helping them launch next-level services. The fintech also provides cards offerings that financial institutions can use instead of building their own pipelines to tap into the API’s of banks.
Speaking on the investment, Nikhil Sachdev, Insight Partners’ Managing Director said in a statement that “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. M2P’s stellar founding team and rapid growth have established the company as a clear market leader that is transforming financial innovation in the region. We’re excited to partner with Madhu and team as they continue to scale up”.
M2P Fintech is currently present in almost 24 Asian and North African markets and is planning to strengthen its presence in those markets as well as venture into new ones. “At a very micro-level, a lot of fintech action that is happening in India is getting replicated in other markets”, M2P’s CEO said. The fintech is also looking at possible acquisitions that’ll make venturing into certain locations easier.