8i Ventures completed a successful exit from M2P Fintech, achieving 12X ROI over 4.5 years and generating 126% of its debut fund’s corpus with just 10% of its capital.
The company’s initial investment of INR 9.7 Cr in M2P Fintech, which specializes in API infrastructure for financial services, resulted in a return of INR 115.9 Cr.
This strategic exit supports 8i Ventures’ plan to focus on early-stage investments, coinciding with the launch of its second $50 million fund and the Origami seed funding program targeting fintech and e-commerce.
Early-stage venture capital firm 8i Ventures announced its full exit from the fintech startup M2P financial technology
with 12X returns in 4.5 years.
In 2022, the venture capital firm achieved a partial exit from the startup with a return on investment (ROI) of 36X.
8i Ventures said in a statement that it invested INR 9.7 Cr in M2P Fintech, starting January 2020. The exit generated 126% of the entire corpus of Fund I on a pre-tax basis, while not using only 10% of its capital.
“We invested 9.7 Cr in this company from January 2020, which was our first check. And we invested in Series A as well as B. We exited for a total amount of INR 115.9 Cr, have a reservation and a MOIC (Multiple on Invested Capital) of 12X and an IRR of 131% over four years and a half,” Vikram Chachra, founding partner of 8i Ventures, told Inc42.
This exit aligns with 8i Ventures’ strategy to return capital to investors and reinvest in early-stage companies.
Chachra said: “Each fund is like a basket of future winners. When you can use a minimum amount of capital and pay off the cost of that basket, you should do so, because then the rest of the basket becomes free.
8i Ventures’ Fund I, launched in May 2019 and closed in July 2021, managed $15.5 million. The value of the fund increased by 2.5 times its initial investment. It achieved an internal rate of return (IRR) of 37% and an MOIC of 3.3X.
M2P Fintech, founded in 2014 by Madhusudanan R, Muthukumar A and Prabhu R, is an API infrastructure company that enables businesses to integrate financial services. It provides payment processing, card issuance, core banking systems and lending infrastructure, etc. to companies like CRED, Ola, Razorpay, Jupiter.
He recently raised INR 850 Cr in a Series D round led by Helios Investment Partners, valuing the company at INR 6,500 Cr.
This release aligns with recent trends in the Indian startup ecosystem, particularly in the fintech sector. Last month, Zodius Capital leaves OfBusiness with over $100 million return on an $8 million investment.
In July, SoftBank exits from Paytm with a loss of 150 million dollars. Also in January, SoftBank recorded a return of $650 million in leave PolicyBazaar mother. In a non-fintech but significant exit, Ratan Tata partially left Upstox with 10X returns in October 2024.
8i Ventures’ portfolio includes other high-potential startups like slice, Blue Tokai, Easebuzz and Bbetter. The company recently launched “Origami”a $10 million seed funding program for startups in the pre-seed and early revenue stages.
“We felt we could release one who did his job. He had reached the point of returning the fund and part of it,” said Chachra, explaining the decision to leave M2P Fintech.
The venture capital firm plans to focus on its second $50 million fund and the Origami programinvesting in the fintech and e-commerce sectors.