Financial infrastructure provider M2P has launched its core lending stack after going on an acquisition spree earlier this year as it bets heavily on offering lending application programming interface (API) infrastructure to banks and fintech.
M2P will now combine all of its current loan products under the new stack, including card issuances and buy-now-pay-later (BNPL) infrastructure.
In an interview, Madhusudanan R, Co-founder and CEO of M2P Fintech stated that the company anticipates that over the next 24 to 36 months, lending infrastructure to banks and non-banking finance companies (NBFCs) would account for 25% of its entire revenues. 65% of the revenues will come from banking and payment services.
Additionally, M2P will use the products it recently acquired, such as the identity verification platform Syntizen, the cloud-based lending platform Finflux, and the provider of collection operation services Origa.ai.
Instead of having its clients partner with numerous loan management systems, M2P hopes to offer a consolidated service by combining several solutions (LMS).
“We realized some banks and large financial institutions have four-five LMS because either they launched different products or their current LMS lacked the capabilities to support their new products. Today, lending products are not offered in an integrated fashion and that is where we saw an opportunity. An integrated approach will help lenders save time instead of finding and integrating with new LMS,” said Madhusudanan on the company’s reason to launch a core lending stack.
The core lending stack of M2P will provide a single interface for lenders.
The Reserve Bank of India (RBI) has been closely monitoring the digital lending area and recently announced operational guidelines to further regulate the sector. This coincides with the debut of M2P.
“From a macro-level, the new digital lending guidelines are pointing out how different kinds of entities – traditional NBFCs or new age fintech – will have to adopt digital lending as a core,” added Madhusudanan.
The top 10 Indian banks and 85 NBFCs already work with M2P. It intends to give these financial service providers access to its enhanced stack.
Madhusudanan R, Muthukumar R, and Prabhu Rangarajan founded M2P, an application programming interface (API) infrastructure company, in 2014. M2P assists businesses in integrating financial services.
M2P Fintech secured $56 million earlier in January, with the help of the international private equity company Insight Partners, based in New York, and valued the startup at $600 million. Additionally, MUFG Innovation Partners, Tiger Global, and Better Capital took part in the round.