Venture capital firm 8i Ventures partially exits M2P Fintech at 415% IRR

CHENNAI: Start-up venture capital firm 8i Ventures said on Monday it had partially exited its seed investment in M2P Fintech at a multiple of 36X recording an IRR (internal rate of return) of 415% over the period of two years. The company executed the partial exit as part of M2P Fintech’s Series C funding round in January 2022.
Chennai-based M2P, which offers banking as a service (BaaS) to fintechs and NBFCs, is among 8i Ventures’ portfolio winners, the company said, noting that it was only exiting from the seed round of his total investment and he will continue to hold more than 75% of his original stake in the company. 8i has backed M2P in its seed, Series A, and Series B funding rounds, and its total investment is approximately $1.3 million.
“We took a small partial exit at a multiple of 36X to demonstrate the robustness of our venture capital model. This small exit allows us to return a significant portion of our fund corpus in three years. We strongly believe in M2P and continue to hold more than 75% of our original stake, which will allow us to capture most of the remaining upside in revenue growth and business valuation,” said Vikram Chachra, founding partner from 8i Ventures, noting that the startup has 10X growth potential in the coming years.
M2P Fintech has grown 60x to around $600 million since 8i Ventures led its seed round in January 2020. M2P clients include category leaders like Slice, Uni, Lazypay and Kodo. It is present in more than 20 markets in Asia and North Africa, including India, Nepal, Egypt, United Arab Emirates, Bahrain, Philippines, Australia and New Zealand.
“8i was the first venture capital fund to believe in M2P’s vision of building a world-class BaaS infrastructure platform for the world from India. They have supported us every step of the way, from seed to Series B. They are more like co-founders than investors to us at M2P,” said Madhusudanan R, Co-Founder and CEO of M2P Fintech.
Other startups in 8i Ventures’ Fund I portfolio include Slice, Easebuzz, Carwale.com, Blue Tokai, MoneyTap, and Signzy, among others. The fundamental objective of Fund I is to support founders who strive to eliminate the frictions of consumption and finance in India. The fund’s portfolio has received follow-on investments from top global VCs including Tiger Global, Insight Partners, Beenext and others.
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