After a dip in scale in the fiscal year ended March 2024, banking infrastructure startup M2P Fintech reported a 33% year-on-year increase in its operating scale and crossed the Rs 500 crore threshold. However, the growth came at a steep cost which surged 90% during the last fiscal year.
M2P Fintech’s revenue from operations grew to Rs 506 crore for the fiscal year ending March 2025 from Rs 382 crore in FY25, its annual consolidated financial statements sourced from the Registrar of Companies (RoC) show.
Significantly, the Tiger Global-backed firm has not disclosed its revenue breakdown for the last fiscal year. It earns revenue from multiple streams, including API usage fees, card issuance and management fees, platform subscription charges, commissions from banking partnerships, lending solutions, cross-border forex services and others.
The company earned almost all of its revenue from the domestic market, with only Rs 5.7 crore coming from export services, despite operating in over 30 markets across the Asia Pacific, MENA, and Oceania regions.
The firm also earned around Rs 25 crore from non-operating sources, recorded under miscellaneous income, which took its overall income to Rs 531 crore in the last fiscal year.
For the SaaS firm, spending on technology, cloud services, and co-branding was the largest cost for the firm, around 41%, which doubled to Rs 325 crore in FY25 as compared to Rs 160 crore in FY24. The employee benefits expenses also rose 24% to Rs 311 crore, which includes a non-cash ESOP cost of Rs 40 crore.
Legal, advertising, impairment, depreciation & amortization, travel, and other overhead expenses brought M2P's total costs to Rs 786 crore, a 49% year-on-year increase compared to Rs 528 crore FY24.
The company’s losses widened 91% to Rs 256 crore in the last fiscal, as technology-related costs doubled during the period, which caused overall expenses to rise faster than operating scale. On a unit level, the company spent Rs 1.55 to earn one rupee in FY24. M2P Fintech recorded a negative ROCE of -34.71% and an EBITDA margin of -44.07%. Its EBITDA (loss) stood at Rs 223 crore during the period. The Chennai-based company’s total current assets stood at Rs 774 crore, including Rs 395 crore in cash and bank balances as of March 2025.
About M2P
M2P Fintech has been Madhusudanan R (Madhu), Prabhu Rangarajan(Prabhu), and Muthukumar A (Muthu). M2P Fintech offers API infrastructure that allows businesses to launch their own branded financial services through partnerships with fintech firms, while ensuring regulatory compliance. The company operates in more than 30 markets across Asia Pacific, MENA, and Oceania, and claims to support over 200 banks and 300 lenders.