The exit came as part of the financial infrastructure provider’s recent $100 million fundraising, which comprised both primary investments and secondary transactions.
The Mumbai-based VC firm had initially invested Rs 9.7 crore in M2P Fintech through its debut fund. That investment grew to Rs 115.9 crore, delivering an internal rate of return (IRR) of 131%. According to the firm, the exit generated 1.27 times the total corpus of Fund I on a pre-tax basis while using only 10% of its capital.
“Identifying and supporting ventures that redefine categories before they become mainstream is central to our approach. M2P’s success has not only generated substantial returns but has also showcased our ability to leverage a small portion of our capital to create outsized impact,” said Vikram Chachra, founding partner, 8i Ventures.
The firm’s Fund I, which was launched in May 2019 and closed in July 2021 with a total corpus of $15.5 million, is currently up 2.5 times with an IRR of 37% and a multiple on invested capital (MOIC) of 3.3 times.
The firm’s portfolio includes companies such as Blue Tokai, Slice, Easebuzz and Bbetter. Over the past decade, 8i Ventures and its partners have backed around 60 seed and early-stage startups.
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In 2022, 8i Ventures marked the first close of its second fund at $25 million. Earlier this year, it launched Origami, a $10 million seed funding programme aimed at supporting promising startups in India.“8i was the first venture capital fund to believe in M2P Fintech’s vision of creating a world-class BaaS (banking as a service) infrastructure platform from India for the global market. They have supported us in every funding round, from seed through Series B,” said Madhusudanan R, cofounder and CEO, M2P Fintech.
Founded in 2014 by Madhusudanan R, Muthukumar R and Prabhu Rangarajan, M2P Fintech provides a software stack for core banking, debit card solutions and various credit operations. The company was nominated in the Bootstrap Champ category at The Economic Times Startup Awards 2019.