SUMMARY

The startup’s bottom line was hurt despite an over 126% YoY jump in operating revenue to INR 440.7 Cr in FY23

M2P’s total expenses stood at INR 623.3 Cr in FY23, a jump of almost 155% YoY

Its employee costs saw a sharp 223.5% increase to INR 188.3 Cr during the year under review from INR 58.2 Cr in FY22

B2B fintech startup M2P Solutions’ consolidated net loss more than tripled to INR 134.3 Cr in the financial year 2022-23 (FY23) from INR 40.1 Cr in the previous fiscal year, hurt by a sharp rise in a few expense buckets.

The startup’s bottom line was hurt despite an over 126% jump in operating revenue to INR 440.7 Cr during the year under review from INR 194.7 Cr in FY22.

Founded in 2014 by Muthukumar A, Prabhu R, and Madhusudanan R, M2P offers fintech API solutions to companies like slice, CRED, Ola, and Razorpay. It offers a wide range of solutions across payments, lending, and banking. 

The startup’s income sources include revenue from API services, payment infrastructure contracts, and card processing services. Besides India, it also has a presence in global markets like the UAE, Egypt, Indonesia, and the Philippines. 

Including interest income and other non-operating income, M2P’s total revenue stood at INR 487.9 Cr in FY23 as against INR 204 Cr in the previous fiscal.

It is pertinent to note that between the end of FY22 and mid-FY23, M2P raised fresh funding as part of its Series C-1 round in multiple tranches. The startup then said it planned to use the capital to further build on its technology and expand teams while accelerating its global expansion plans.

In September 2022, M2P received an investment of $2.7 Mn from American multinational financial service provider Visa.

The startup’s expenses surged in FY23 in line with its expansion plans.

Zooming Into Expenses 

M2P’s total expenses stood at INR 623.3 Cr in FY23, a jump of almost 155% from INR 244.6 Cr in the year before.

Employee Benefit Expenses: The startup’s employee costs saw a sharp 223.5% increase to INR 188.3 Cr during the year under review from INR 58.2 Cr in FY22.

In that, M2P spent INR 145.2 Cr towards salaries and wages, which increased 187.2% year-on-year (YoY).

Besides, the startup also spent INR 29.1 Cr towards employee share based payments in FY23.

Cost of Materials Consumed: M2P’s spending in this bucket witnessed a 118% jump to INR 365.4 Cr in FY23 from INR 167.4 Cr in the year before.

Legal Professional Charges: The startup spent INR 22 Cr on legal charges, which was a 262% jump YoY.

Meanwhile, M2P continues to bolster its technology stack. Recently, it acquired big data analytics and intelligence platform Goals101 in a cash-and-equity deal, valuing the latter at around INR 250 Cr (about $30 Mn).

SUMMARY

The startup’s bottom line was hurt despite an over 126% YoY jump in operating revenue to INR 440.7 Cr in FY23

M2P’s total expenses stood at INR 623.3 Cr in FY23, a jump of almost 155% YoY

Its employee costs saw a sharp 223.5% increase to INR 188.3 Cr during the year under review from INR 58.2 Cr in FY22

B2B fintech startup M2P Solutions’ consolidated net loss more than tripled to INR 134.3 Cr in the financial year 2022-23 (FY23) from INR 40.1 Cr in the previous fiscal year, hurt by a sharp rise in a few expense buckets.

The startup’s bottom line was hurt despite an over 126% jump in operating revenue to INR 440.7 Cr during the year under review from INR 194.7 Cr in FY22.

Founded in 2014 by Muthukumar A, Prabhu R, and Madhusudanan R, M2P offers fintech API solutions to companies like slice, CRED, Ola, and Razorpay. It offers a wide range of solutions across payments, lending, and banking. 

The startup’s income sources include revenue from API services, payment infrastructure contracts, and card processing services. Besides India, it also has a presence in global markets like the UAE, Egypt, Indonesia, and the Philippines. 

Including interest income and other non-operating income, M2P’s total revenue stood at INR 487.9 Cr in FY23 as against INR 204 Cr in the previous fiscal.

It is pertinent to note that between the end of FY22 and mid-FY23, M2P raised fresh funding as part of its Series C-1 round in multiple tranches. The startup then said it planned to use the capital to further build on its technology and expand teams while accelerating its global expansion plans.

In September 2022, M2P received an investment of $2.7 Mn from American multinational financial service provider Visa.

The startup’s expenses surged in FY23 in line with its expansion plans.

Zooming Into Expenses 

M2P’s total expenses stood at INR 623.3 Cr in FY23, a jump of almost 155% from INR 244.6 Cr in the year before.

Employee Benefit Expenses: The startup’s employee costs saw a sharp 223.5% increase to INR 188.3 Cr during the year under review from INR 58.2 Cr in FY22.

In that, M2P spent INR 145.2 Cr towards salaries and wages, which increased 187.2% year-on-year (YoY).

Besides, the startup also spent INR 29.1 Cr towards employee share based payments in FY23.

Cost of Materials Consumed: M2P’s spending in this bucket witnessed a 118% jump to INR 365.4 Cr in FY23 from INR 167.4 Cr in the year before.

Legal Professional Charges: The startup spent INR 22 Cr on legal charges, which was a 262% jump YoY.

Meanwhile, M2P continues to bolster its technology stack. Recently, it acquired big data analytics and intelligence platform Goals101 in a cash-and-equity deal, valuing the latter at around INR 250 Cr (about $30 Mn).