Medilytix Bureau:

A payments infrastructure startup, M2P Fintech that has established market dominance in India, has raised $56 million in a new financing round, less than three months after closing its previous funding, as it works to deepen its footprints in several international geographies.

Insight Partners, the New York-based private equity and venture capital firm, led the Chennai-headquartered startup’s Series C financing round. MUFG Innovation Partners, part of the giant Japanese bank, and existing investors Tiger Global and Better Capital also participated in the ongoing round.

The new round, which moves M2P’s all-time raise to $107 million, has seen the startup nearly double its valuation to about $605 million in a span of just three months.

M2P Fintech, founded by two Visa alums, has two core offerings. It helps banks and other financial institutions that have the regulatory licenses but need help with tech to launch banking services.

“We also help them upgrade their tech stack. There’s a movement underway as banks are transitioning from being capex-heavy product implementation model to opex, SaaS-kind of model,” said Madhusudanan R, co-founder and chief executive of M2P Fintech. Scores of tier 1 as well as fast-emerging fintech-friendly banks are customers of M2P Fintech, which is helping them power their new-generation services, he said.

The startup’s second marquee offering is providing the payments layer to hundreds of fintech startups with card offerings (such as Slice and Open) to manage their entire money flow. For instance, if a fintech startup wants to launch a new offering, they may want to work with half a dozen banks. This will require building their own pipelines to tap the banks’ APIs. They can instead work with M2P Fintech, which already has the railroads in place.

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