In a remarkable exit, 8i Ventures, an India-focused venture capital fund, has secured an impressive 12x return on its early investment in M2P Fintech. The fintech company, which specializes in Banking-as-a-Service (BaaS), recently raised $100 million, allowing 8i Ventures to exit with a return of INR 115.9 crore from an initial INR 9.7 crore investment. The 4.5-year journey delivered an internal rate of return (IRR) of 131%, underscoring 8i’s acumen in identifying transformative companies.
M2P Fintech, which started with a vision of creating a world-class BaaS infrastructure for global markets, gained significant traction due to its innovative business model and customer-first approach. Early investors like 8i Ventures, led by founding partner Vikram Chachra, supported the company through multiple funding rounds, believing in its potential to disrupt the fintech landscape.
“We’ve always sought out ventures that have the power to redefine entire sectors. M2P was one of our power law winners,” said Chachra. M2P’s co-founder and CEO, Madhusudanan R, credited 8i Ventures as a key partner, describing them as “more like co-founders than investors.”
This stellar exit adds to the success of 8i Ventures’ Fund I, which closed in 2021. The fund, managing $15.5 million, has now achieved 1.27x the corpus of Fund I through this single exit, while utilizing just 10% of the capital.
As 8i Ventures gears up for future successes, the firm has been setting the stage for IPOs of other portfolio companies like Blue Tokai and Slice. The fintech ecosystem in India is booming, and firms like 8i are reaping the benefits of spotting trends early.
Key Highlights:
- 8i Ventures earned a 12x return on its investment in M2P Fintech.
- Initial investment of INR 9.7 crore led to an exit worth INR 115.9 crore.
- M2P Fintech has raised $100 million in its latest funding round.
- 8i Ventures has set the stage for multiple IPOs from its portfolio.
Sources:
This article is based on information from Entrackr
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