8i Ventures, an early-stage India-focused venture capital fund has fully exited its investment in M2P Fintech as part of the company’s recent $100 million capital raising, which included both primary and secondary investments. This successful exit demonstrates 8i Ventures’ dedication to finding and fostering high-potential ventures from the start.
Since its original investment of INR 9.7 crores in M2P Fintech, 8i Ventures has earned an incredible 12x return of INR 115.9 crores in just 4.5 years, with an internal rate of return (IRR) of 131 per cent. The investment in M2P Fintech created 1.27x the total corpus of Fund I on a pre-tax basis while using only 10 per cent of the money. This illustrates M2P Fintech’s outstanding performance and its status as a “power law winner” in 8i’s portfolio.
“Our early investment in M2P has proven to be transformative,” said Vikram Chachra, Founding Partner of 8i Ventures. “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.”
“8i was the first venture capital fund to believe in M2P Fintech’s vision of creating a world-class BaaS infrastructure platform from India for the global market. They have supported us in every funding round, from seed through Series B. For us, they feel more like cofounders than investors,” said Madhusudanan R, chief executive officer and cofounder, M2P Fintech Fintech.
8i Ventures’ Fund I, which opened in May 2019 and closed in July 2021, managed $15.5 million, with $13 million in assets under management (AUM) and $2.5 million in co-investment AUM. This exit reinforces the firm’s objective of investing in early-stage startups that have the potential to become market leaders. 8i Ventures’ Fund I is currently up 2.5 times, with an IRR of 37 per cent and a Multiple On Invested Capital (MOIC) of 3.3x.
Other potential startups in 8i Ventures’ portfolio include Blue Tokai, Slice, Easebuzz, and Bbetter, all of which are expected to have successful IPOs in the next 3-4 years. Blue Tokai, Easebuzz, and Slice are among the companies expected to go public. Bbetter, the youngest contender, is currently profitable and hopes to achieve a $10 million run rate this year while doubling its revenue.
In 2022, 8i Ventures announced the first closure of its second fund at $25 million, joining a growing list of private investors who have raised a significant India-focused fund despite global challenges. Earlier this year, 8i Ventures established ‘Origami’, a $10 million seed funding initiative to support India’s start-ups.
