Taking its acquisition run further, M2P Fintech has now acquired Finflux. Following the acquisition of two fintech businesses in September 2021, M2P now has three acquisitions under its belt.
Finflux, a cloud lending platform based in Bengaluru, provides services including integration, analytics, co-lending, loan origination, loan managing, and BNPL, among others.
According to reports, the startup withheld information about the deal’s financials.
Reports also stated that now, with the acquisition of Finflux, M2P is planning to speed up digitisation, workflow automation, and bring new loan products.
The Bengaluru-based company also offers customisable approvals, tiered market-checkers, adjustable underwriting rules, and workflow automation based on rules. Finflux claims to serve more than 12 Mn borrowers and more than 60 clients from 15 different countries.
The buy now pay later (BNPL), marketplace integration, app-based lending, optional data-based credit rating, and analytics are just a few of the features that are available through Finflux’s cloud lending platform.
The CEO and creator of Finflux, Nayan Ambali, expressed his excitement about joining the M2P team. He said, “We are excited to join the M2P team. With this acquisition, we move closer to our mission of enabling 100 million borrowers. With M2P’s network and resources, we will be able to better serve our existing customers, reach a wider market, expand into different geographies and create new technology product experiences.”
M2P Fintech, a fintech startup offering fintech API solutions to businesses, was founded in 2014 by Madhusudanan R, Muthukumar A, and Prabhu R. By working with banks and NBFCs, these solutions give companies the ability to integrate financing into their goods. It provides services for companies including Slice, CRED, Ola, and Razorpay.
“The credit utilization story in India is at a critical juncture, and we believe that there will be an opportunity for customizable cloud-ready platforms with a role of micro-elements,” said Madhusudhanan R, cofounder of M2P Fintech.
“Finflux’s platform will power our core offerings in BNPL and neo credit products as we embark on a mission to digitise the lending environment,” he added.
Finflux is one of the three startups that M2P Fintech has acquired in total. This is the company’s third acquisition after it took over two fintech businesses, Wizi a credit card sourcing startup, and Origa AI which is a loan recovery startup, in September 2021.
After raising $100 Mn in just 2021, the Tamil Nadu-based business M2P Fintech raised $56 Mn in a funding round in January 2022. Additionally, it invested $4 Mn in the payments company LivQuik Technology.
According to M2P, its API infrastructure is used by more than 500 fintech companies, tens of banks, and NBFCs to enable embedded finance. It also states that it serves more than 20 markets in Asia and North Africa.
According to an analysis, fintech SaaS is one of the fastest-growing potential segments within the entire fintech ecosystem, growing at a 40% CAGR between 2021 and 2025 to reach a total market potential of $12.6 Bn in India by 2025.