API Platform M2P Fintech announced on Thursday that it has raised $56 Mn in Series C1 round. New York based Venture Capital firm Insight Partners spearheaded the round while MUFG Innovation Partners and existing investor Tiger Global also participated in the round.
Following the intermediary C1 round, the Chennai based startups valuation has now touched $600 Mn. This is M2P Fintech’s third financing round in less than a year and its largest funding round till date. The startup has so far picked up $107 Mn through external funding. Its last funding round was in October last year, when it sought the valuation of $335 Mn.
The latest round has propelled the Chennai based startup near to the billion dollar valuation. Given that this is an intermediary round, the startup is expected to raise another tranche of round in the coming weeks or months probably at a higher valuation.
The company has said that it will use the funds for ramping up its international expansion and for M&A purposes. It currently offers API services in eight countries and is aiming to grow this number to 20 in near future.
M2P Fintech, which was previously known as Yap, offers API infrastructure capabilities to banks, fintech and consumer internet companies across Asia. For all those who don’t know, API refers to software intermediaries that enables or facilitates seamless communication between several computer systems.
M2P’s API software helps banks and fintech companies in processing of cross-border payments, credit and debit card payments, neo banking and Buy Now Pay Later.
The legacy banks growing awareness about digital presence and fintech’s rapid growth augurs well for the future prospects of API platforms like M2P Fintech. However, several challenges persists for API companies but ‘finding & hiring talented workforce’ remains by far the most daunting challenge.