New Delhi, March 5 (IANS) Bengaluru-based banking infrastructure startup M2P Fintech’s operating revenue dropped by 13.4 per cent to Rs 382 crore, compared to Rs 441 crore in financial year (FY23).
The Tiger Global-backed company generates revenue through API usage fees, card issuance and management fees, platform subscriptions, banking partnerships, and cross-border forex services.
M2P Fintech, which operates in over 30 international markets, witnessed a significant decline of 76.2 per cent in its export income from Rs 19.3 crore in FY23 to Rs 4.6 crore in FY24.
The primary reason due to which the startup struggled to maintain its growth momentum in FY24 is surging expenses.
According to its financials, the employee benefits remained the biggest expense, accounting for 47.5 per cent of total costs.
These expenses rose by 33.5 per cent to Rs 251 crore, including a non-cash ESOP cost of Rs 36 crore.
However, the company cut its spending on technology, cloud services, and co-branding by 56.4 per cent, bringing these costs down to Rs 160 crore.
Other operational expenses, including legal, advertising, travel, and overhead costs, brought M2P’s total expenses to Rs 528 crore.
Its ROCE (Return on Capital Employed) was (-) 28.23 per cent, while its EBITDA margin stood at (-) 22.51 per cent.
The company continued to spend Rs 1.38 for every rupee earned, reflecting ongoing financial challenges.
After witnessing a threefold year-on-year (YoY) surge in net loss during FY23, the B2B fintech startup reported a net loss of Rs 133.5 crore — a marginal 0.15 per cent increase from Rs 133.3 crore in the previous fiscal year.
By the end of FY24, the fintech had Rs 318 crore in total assets, with Rs 78 crore in cash and bank balances.
As per media reports, it has raised over $200 million in funding so far, including $100 million in a Series D round led by Helios Investment Partners last year. Its key investors include Beenext, Tiger Global, and Helios Partners.
Amid its financial struggles, M2P acquired Chennai-based AI startup Mad Street Den in a deal worth $10-15 million, the report added.
–IANS
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