M2P Fintech, based in Chennai, has raised Rs 417.5 crore ($50 million) in Series D funding from Taj Investment Holdings. The company plans to use the funds for expanding operations and meeting working capital needs. M2P's post-funding valuation stands at around $800 million, according to startup data platform TheKredible.
This is Taj Investment Holdings' first reported investment in an Indian startup. M2P has not yet commented on the investment.
Along with raising funds, M2P has added 38,700 new employee stock options, bringing its total stock option pool to 1,29,140.
Before this round, Beenext was the largest shareholder in M2P, holding 10.23%, followed by Tiger Global at 9.22% and Insight Partners with 6.44%. Co-founders Muthukumar Ayyakannu, Prabhu Rangarajan, and Madhusudanan R collectively own 34.03%.
M2P Fintech provides API infrastructure that helps businesses offer financial services while staying compliant. The company operates in many countries, including Nepal, the UAE, Australia, New Zealand, and Egypt.
M2P's revenue grew 2.26 times in FY23 to Rs 440.7 crore, but losses also increased by 3.35 times to Rs 134.26 crore. They are yet to file their FY24 financial results.
In a competitive space, M2P faces rivals like Pine Labs' Setu, Signzy, and Decentro.