Chennai-headquartered M2P Solutions, which owns payments infrastructure platform M2P Fintech, on Wednesday said it has acquired core banking solutions provider BSG ITSOFT, for an undisclosed sum.
The buyout aims to bolster M2P Fintech to provide a new generation cloud-native platform and position the company so as to offer a fully integrated banking and payments stack built on application programming interface first infrastructure.
The deal will also cater to emerging use cases around blockchain, trade finance.
The Mumbai-based BSG offers proprietary technology that leverages data science insights to optimise user experience, the cloud-native platform has a clientele of over 250 co-operative banks, small finance banks and non-banking financial companies (NBFCs).
“Globally we are witnessing new and relevant technologies disrupting every aspect of financial services and we realised core banking system is the nucleus of all things fintech. Given that Central banks around the world are building out CBDC, besides all the work that’s happening around the broader applicability of blockchain in financial services, we felt it was opportune to build a core system that can act as a bridge between the legacy infrastructure and the future,” said Madhusudanan R, Co-Founder and CEO of M2P Fintech.
Founder and CEO of BSG, Satish Krishnaswamy, will take up a product leadership role and continue in M2P.
"Our mission is to modernise banking experience either by replacing the legacy system through our TURING CBS as well as build on top of existing legacy systems through our TURING nCORE platform. Over the past few years, we have been able to enable banks of all sizes to intelligently manage their operations and scale seamlessly,” Krishnaswamy said.
M2P Fintech was founded in 2014 by Madhusudan, Muthukumar A and Prabhu R. The platform claims to provide application programme interface (API) solutions to banks and financial technology companies to develop products around bank accounts and term deposits, in addition to a range of digital payment modes including debt, credit, prepaid, QR, UPI, and toll payments.
M2P has a market presence in India, Nepal, United Arab Emirates, Australia, New Zealand, the Philippines, Bahrain, and Egypt. The company plans to expand its footprint to Indonesia, Bangladesh, Vietnam, and across the MENA region. it operates in over 20 markets across Asia and North Africa.
In September, M2P Fintech acquired credit card-focused fintech startup Wizi and SaaS firm Origa.ai
In October 2021, M2P Fintech raised $35 million in a Series C round of funding led by Tiger Global Management. In March, it raised $10 million in a Series B round of funding co-led by Flourish Ventures and Omidyar Network India.
In January 2022, M2P Solutions raised $56 million (around Rs 420 crore) in a Series C1 round led by New York-based private equity and venture capital firm Insight Partners.
M2P’s existing investors also include BEENEXT, Flourish Ventures, Omidyar Network India, 8i Ventures, and the DMI Group via its investment vehicle Sparkle Fund. To date, the company has raised more than $100 million in the past year.
