Indian banking technology infrastructure provider M2P Fintech has closed its Series D financing, raising Rs 850 crore ($102 million) in a mix of primary and secondary capital, led by Africa-focused private equity firm Helios Investment Partners.
The round also saw participation from marquee banks across Asia, with existing investor Flourish Ventures doubling down on the company.
The funding round valued the firm at over Rs 6,550 crores ($783.6 million), M2P said Tuesday. It, however, didn’t disclose how much it raised in primary capital in the funding round.
Chennai-headquartered M2P Fintech plans to use the funds to improve market leadership in India, besides helping grow its international franchise, particularly in Africa. It also plans to accelerate its growth by improving its technology stack, focusing on leveraging artificial intelligence and building out advanced data capabilities. It believes that investments in these areas will also help it scale its partnerships with financial institutions.
“As the world's largest banking-as-a-service provider, this capital infusion will not only reinforce our leadership in India—where we've established a robust, comprehensive ecosystem—but also accelerate our ambitious global expansion efforts,” said Madhusudanan R, M2P Fintech's chief executive officer and co-founder.
The Series D round comes more than two-and-a-half years after it raised $56 million in its Series C1 round, which was led by Insight Partners, and mopped up $35 million in a Series C round led by Tiger Global in late 2021.
Over the past few years, M2P has expanded its global footprint, with a focus on emerging markets. Africa now stands as the company's next major growth area.
“Africa, with its rapidly growing digital economy and pressing need for financial inclusion, presents immense potential for fintech innovation,” said Madhusudanan.
London-headquartered Helios is a private investment firm with over $3.0 billion in assets under management. It is one of largest PE firms operating in India and is currently raising its fifth flagship fund that has a target of $750 million.
"Helios has a significant track record in growing fintech and financial services businesses on the continent, and this investment aligns with our strategy to invest in high-growth, tech-focused businesses," said Elias Yazbeck, managing director, financial services and fintech at Helios.
M2P Fintech started in 2014 as an API infrastructure company. It later turned into a banking-as-a-service company and formed partnerships with banks, lenders, fintech, and consumer technology companies.
It claims that it operates in over 30 markets across the Asia Pacific, Middle East, North Africa, and Oceania regions. It provides its services to over 200 banks, more than 300 lenders, and over 800 fintech companies.
