According to M2P, the acquisition will allow it to improve workflow automation and roll out support for lending products.
“The consumption credit story in India is at a tipping point and we believe with the macro factors playing out, there is going to be immense potential for highly customisable, cloud-ready platforms that can scale. With Finflux, we can cater to the burgeoning and fast-evolving digital lending ecosystem across banks, NBFC’s and fintech,” said Madhusudanan R, cofounder, M2P Fintech.
Founded in 2010, Finflux’s cloud-lending platform offerings include loan origination, loan management, co-lending, buy-now-pay-later (BNPL) products, marketplace integration, app-based lending, and alternative data-based credit scoring and analytics.
It works with over 60 global customers, including lending fintech firms, non-banking financial institutions (NBFC), microfinance institutions, savings and credit cooperative societies, banks and other financial institutions. In addition, the platform caters to over 12 million borrowers.
Earlier
in January, M2P Fintech raised $56 million led by New York-based global private equity firm Insight Partners, valuing the startup at $600 million. The round also saw participation from MUFG Innovation Partners, Tiger Global and Better Capital.
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In October 2021,
the company also raised $35 million from Tiger Global. To date, the company has raised over $107 million in equity funding.
“With this acquisition, we are closer to our mission of enabling 100 million borrowers. With M2P’s network and resources, we’ll be able to serve our current customers more efficiently, reach a wider market, expand across geographies, and build new technology product experiences at a blitz,” said Nayan Ambali, founder & chief executive, Finflux.
Founded in 2014 by Madhusudanan R, Muthukumar R and Prabhu Rangarajan, M2P is an application programming interface (API) infrastructure company that helps businesses to embed financial services.
Currently, the platform claims to have customers across 20 markets and works with over 30 banks, and has clocked over 600 fintech engagements across industries.
M2P’s existing investors include Beenext, Flourish Ventures, Omidyar Network India, 8i Ventures, and the DMI Group via its investment vehicle Sparkle Fund.
