M2P Fintech Acquires Mad Street Den for Enhanced Banking Solutions
Date: September 2024
Strategic Acquisition Announcement
M2P Fintech, a leader in fintech banking infrastructure, has made headlines by agreeing to acquire a startup from AI Mad Street Den (MSD). The deal, valued at approximately $15 million, includes a combination of cash and stock.
Integration of Advanced AI Technology
Following the acquisition, M2P Fintech plans to integrate MSD’s flagship product, View.Ai, into its service offerings. This AI orchestration platform is designed to facilitate data collection, cleansing, and analysis across sectors including banking, finance, logistics, and retail, providing a comprehensive solution for businesses.
Unique Transaction Structure
Notably, the acquisition will be structured as a purchase of assets due to Mad Street Den’s registration outside India. This means that M2P Fintech will acquire MSD’s intellectual property, existing contracts, and employees, rather than the company’s business entity, a strategic move to streamline operations and minimize legal complexities.
Financial Implications
As part of the agreement, a portion of the $10 to $15 million will be allocated to addressing operational liabilities, including employee salaries and ongoing commitments. This thoughtful financial planning highlights M2P Fintech’s dedication to a smooth transition and ongoing support for the MSD team.
About Mad Street Den
Founded in 2016 and headquartered in California, Mad Street Den specializes in artificial intelligence and computer vision technologies. The company aims to create “AI-Native” businesses by delivering adaptable AI solutions across various industries. With additional offices in India and Japan, MSD has successfully attracted $30 million from noted investors such as Sequoia Capital and Falcon Edge Capital.
M2P Fintech’s Growth Journey
This acquisition comes on the heels of M2P Fintech’s recent fundraising success, where the company raised ₹850 crore in a Series D financing round led by Helios Investment Partners. This investment effectively positions M2P Fintech with a valuation exceeding ₹6,550 crore, emphasizing its potential for expansion and innovation.
Looking Ahead: Expansion and Innovation
Moving forward, M2P Fintech aims to utilize the funds from its financing round to bolster its operations in Africa and enhance its technological infrastructure, particularly in AI and advanced data capabilities. By deepening partnerships with financial institutions, M2P Fintech is set to redefine the landscape of banking technology and financial services.