8i Ventures Achieves 12 Times Return Exiting M2P Fintech in Venture Capital Success
8i Ventures’ Remarkable Exit
Early-stage venture capital (VC) firm 8i Ventures has successfully exited from M2P Fintech, securing an impressive 12 times return on its investment within a four and a half year period. The exit coincided with M2P Fintech's recent $100 million fundraising, which included both primary and secondary investments. Initially, 8i Ventures invested Rs 9.7 crore in M2P Fintech through its debut fund, growing that investment to Rs 115.9 crore by strategically identifying early-stage startups in the fintech realm.
Strategic Vision Behind the Investment
- Internal Rate of Return (IRR): Achieving an IRR of 131% highlights the firm’s effective investment strategy.
- Fund I Performance: The first fund, launched in May 2019, currently stands at 2.5 times with an IRR of 37%.
- Investment Philosophy: “Identifying ventures that redefine categories is central to our approach,” stated Vikram Chachra, founding partner of 8i Ventures.
M2P Fintech’s Growth Journey
Founded by Madhusudanan R and his co-founders in 2014, M2P Fintech provides a robust software stack for core banking and various financial operations, including debit card solutions. The company has received accolades such as the Bootstrap Champ nomination at The Economic Times Startup Awards 2019, reflecting its impactful presence in the fintech sector.
Future Prospects
8i Ventures continues to innovate with its second fund, marked by a recent close at $25 million, and has launched a new initiative, Origami, to support upcoming startups in India's ever-expanding fintech landscape. This progressive vision is set to maintain 8i's reputation as a key player in the venture capital space, particularly within the banking as a service domain.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.