M2P Fintech, a Chennai-based application programming interface (API) infrastructure company, announced raising of $56 million in Series C1 funding led by New York-based global private equity and venture capital firm Insight Partners along with from MUFG Innovation Partners, a corporate venture capital (CVC) arm of Mitsubishi UFJ Financial Group, Inc. (MUFG), Japan. The round also saw the participation of existing investors Tiger Global and Better Capital. 

Through an API infrastructure, M2P Fintech enables businesses of any scale to embed financial products in their customer journeys. Over 500 fintech companies, dozens of banks and other financial institutions currently leverage M2P’s API infrastructure to embed financial products.

“The consequence of Covid-19 pandemic has accelerated the shift from in-person to digital consumption. This shift has forced businesses across the globe to move from brick and mortar to digital channels and, in doing so, has created an urgency for businesses to adopt an API platform like ours,” Madhusudanan R, Co-Founder and CEO of M2P Fintech said in a press release. 

Previous fund raise

Prior to this, M2P Fintech raised $35 million in Series C funding led by Tiger Global Management in October 2021. It has raised more than $100 million in the past year and its existing investors include BEENEXT, Flourish Ventures, Omidyar Network India, 8i Ventures, and the DMI Group via its investment vehicle Sparkle Fund.

Speaking to BusinessLine, Madhusudanan said the fresh funding will be used to grow its international operations and also fuel inorganic growth through acquisitions.

“Even in the last round (of funding), we announced that a large part of the funding was aimed at international market expansion and that continues to be the case with the current fundraise also,” Madhusudanan said.

“The second reason for the fundraise is also to chase inorganic growth. We have announced a couple of acquisitions last year and we are currently pursuing 3-4 deals. So, we have enough capital to grow inorganically and grow faster,” he said.

In September 2021, M2P Fintech acquired two fintechs -- Bengaluru-based Software as a service (SaaS) technology platform Origa.ai and Chennai-based credit card focussed fintech Wizi.

Madhusudanan said the investment will enable M2P Fintech to leverage Insight Partners’ deep understanding of working with fintech entrepreneurs across the globe while MUFG, with assets across Asia, will be a key partner in the next phase of growth.

“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,” Nikhil Sachdev, Managing Director at Insight Partners was quoted in the release. 

Mayank Shiromani, VP, MUFG Innovation Partners, said, “For financial institutions like MUFG, M2P unlocks new partnerships possibilities and provides tested technology for scaling digital offerings efficiently.”