M2P Fintech Acquires AI Startup Mad Street Den for $15 Million

M2P Fintech, a leading banking infrastructure company, has finalised an acquisition of the AI company Mad Street Den (MSD) in a cash-and-stock deal estimated at around $15 million. This acquisition will enable M2P Fintech to incorporate MSD’s innovative AI platform, Vue.ai, into its range of banking technology solutions, as reported by Moneycontrol, which cites industry sources.

Integration of AI-Powered Vue.ai

The core offering of MSD, Vue.ai, is a versatile AI orchestration platform that is designed to gather, refine, and analyse data, empowering businesses across a variety of sectors including banking, finance, logistics, and retail. The report emphasised that the acquisition would entail an asset purchase rather than the typical company acquisition process, given that Mad Street Den is officially registered outside of India. This structure allows M2P Fintech to gain MSD’s intellectual property, current contracts, and workforce without assuming the company’s corporate identity.

Transaction Details and Financial Implications

A segment of the deal amount, valued between $10 million to $15 million, will be utilised to address operational responsibilities, such as salaries of employees and other financial commitments that remain outstanding, according to the report.

Overview of Mad Street Den

Founded in 2016 and based in California, Mad Street Den is a computer vision and AI firm dedicated to transforming businesses into “AI-native” entities by delivering scalable AI solutions across various sectors. The company maintains offices in India and Japan and has successfully raised $30 million from notable investors, including Sequoia Capital and Falcon Edge Capital.

M2P Fintech’s Recent Funding Round

In September 2024, M2P Fintech secured Rs 850 crore in a Series D funding round led by Helios Investment Partners, resulting in a valuation exceeding Rs 6,550 crore for the company. Flourish Ventures, an existing investor, also contributed to this financing round. During this period, the Chennai-based startup expressed intentions to utilise the raised funds—derived from a combination of primary and secondary share sales—to bolster its operations in Africa and enhance its technological capabilities, with a specific focus on AI and advanced data functions, thereby aiming to expand partnerships with various financial institutions.