M2P Fintech demonstrates impressive growth in its operations with a 33% year-on-year rise, surpassing the Rs 500 crore mark for the fiscal year ending March 2025. However, this growth has come at a significant cost, with expenses increasing by 90% during the last fiscal year. M2P Fintech’s revenue from operations climbed to Rs 506 crore from Rs 382 crore in FY25, as per its annual consolidated financial statements obtained from the Registrar of Companies (RoC). M2P Fintech provides API infrastructure that empowers businesses to launch branded financial services through partnerships with fintech firms, ensuring compliance with regulations. The company operates across over 30 markets in Asia Pacific, MENA, and Oceania, claiming to support more than 200 banks and 300 lenders.
Significantly, the firm, backed by Tiger Global, has not provided a breakdown of its revenue for the past fiscal year. M2P Fintech generates income from various sources including API usage charges, card issuance and management fees, platform subscription fees, commissions from banking partnerships, lending solutions, and cross-border forex services. Despite being active in over 30 markets, most of its revenue came from the domestic market, with just Rs 5.7 crore from export services. The firm also reported approximately Rs 25 crore from non-operating sources, recorded under miscellaneous income, bringing its total income to Rs 531 crore for the last fiscal year.
For this Software as a Service (SaaS) firm, the most significant costs stemmed from technology, cloud services, and co-branding, which constituted approximately 41% of its total expenses, increasing to Rs 325 crore in FY25 compared to Rs 160 crore in FY24. Additionally, employee benefit expenses rose by 24% to Rs 311 crore, which included a non-cash ESOP expense of Rs 40 crore. Legal fees, advertising, impairment, depreciation and amortization, travel, and other administrative costs led M2P’s total expenses to Rs 786 crore — a 49% year-on-year rise from Rs 528 crore in FY24. The company’s losses increased by 91% to Rs 256 crore while technology-related expenses surged, causing overall costs to outpace revenue growth. On a unit basis, M2P spent Rs 1.55 to earn one rupee in FY24.
M2P Fintech’s return on capital employed (ROCE) was negative at -34.71%, with an EBITDA margin of -44.07%. Its EBITDA losses stood at Rs 223 crore for the period. As of March 2025, M2P Fintech’s total current assets were valued at Rs 774 crore, including Rs 395 crore in cash and bank balances. The firm has raised over $200 million to date, including $100 million in its Series D funding round, which involved a mix of primary and secondary transactions led by Helios Investment Partners in September 2024. Additionally, in March last year, the company acquired Chennai-based Mad Street Den in a distress sale estimated at around $10–15 million.
M2P’s financial data suggests it may have benefited from relatively accessible funding, based on its figures. However, its international performance has been lacklustre, despite the presence of high-profile names that may have aided in previous funding rounds. The firm’s negative margins within its operating segments present significant challenges for achieving profitability, compounded by ongoing volatility in these areas. Although miscellaneous income suggests a safety net for the near future, securing additional funding at a favourable valuation may prove challenging given the perpetual threat of disintermediation plaguing the fintech sector, particularly in India.
The company’s aggressive acquisition strategy includes not only Mad Street Den but also Goals101 (AI transaction intelligence, 2023) and Syntizen (identity verification). The strategic aim behind these acquisitions is to enhance its capabilities in AI and personalisation, crucial for adapting to emerging trends like agentic AI and composable finance. However, whether these initiatives will convince stakeholders remains uncertain. Current disruptions, such as the ongoing conflict in West Asia, may further complicate M2P’s position. The company may soon need to choose between conserving funds and continuing investments in promising but underperforming products. This decision comes with an expiration date, particularly as an IPO appears to be a pivotal opportunity for navigating the challenges of FY27 and beyond.
