India's 8i Ventures gets 36x return on M2P Fintech
Indian early-stage investor 8i Ventures has made a partial exit of its seed shares in local banking software supplier M2P Fintech, generating a 36x multiple and an IRR of 415% after two years.
It continues to hold more than 75% of its original stake in M2P. The VC firm has participated in at least three rounds in the start-up since April 2020, according to AVCJ. These commitments came from its first flagship fund, which launched in May 2019 and closed on USD 13m in July 2021.
Fund I is now said to be marked at 4x with an IRR of 122%. It has made 13 investments to date with cheque sizes ranging up to USD 1.3m. In addition to M2P, portfolio standouts include credit card issuer Slice, which raised a USD 220m round led by Tiger Global Management and Insight Partners last year at a valuation of USD 1bn.
Tiger and Insight are also investors in M2P, having backed a USD 56m Series C round as recently as January. 8i claims the start-up’s valuation has grown by 60x to USD 600m since it led a seed round in January 2020. M2P’s client base features Slice, as well as the likes of Uni, Lazypay and Kodo. It has a presence in over 20 markets across Asia and North Africa.
“M2P is a crown jewel in our portfolio. We took a small partial exit at a 36x multiple to demonstrate the robustness of our venture model. This small exit allows us to return a significant portion of our fund corpus within three years,” Vikram Chachra, a founding partner of 8i, said in a statement.
“We invested in M2P in the belief that it could eventually emerge as a foundational platform in India’s fintech economy. In reality, the company exceeded our seven-year revenue target in two years, while building an incredible 97% market share.”
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