M2P Fintech acquires SaaS loan recovery start-up Origa AI
The acquisition follows M2P’s acquisition of the startup Wizi, which invests in the issuer of prepaid payment instruments, LivQuik and partners with fintech Buckzy Payments.
M2P-Origa deal was a mix of cash and shares, taking the acquisition’s valuation to $ 2 million to $ 2.5 million
Origa AI Founder Venkatesh Chari to Take on a Product Leadership Role at M2P and Continue to Develop Origa AI
M2P Fintech (formerly YAP), based in Tamil Nadu, has announced the acquisition of the SaaS startup Origa AI. With this acquisition, M2P aims to strengthen the plug-and-play model of its platform and its technological capabilities in debt collection.
The deal was a mix of cash and stocks, bringing the acquisition valuation to $ 2 million – $ 2.5 million.
âAll of the investors in Origa AI got an exit,â M2P co-founder Muthukumar A told Inc42. âIt’s a complete business acquisition that helps M2P expand its verticals. Origa AI founder Venkatesh Chari will assume a product leadership role at M2P and continue to develop Origa AI and strengthen the debt management stack, âhe added.
Founded in 2018 by Chari, Origa AI is a B2B debt collection platform for borrowers, lenders and debt collectors. It provides services such as collection process mapping, driving customer centric engagement, debt resolution strategies in a market model.
The startup, which competes with Credgenics, CreditNirvana, Creditmate, has already raised a total of $ 253,000 in two rounds of funding from US-based Better Capital and EMVC.
The acquisition follows M2P’s acquisition of credit card provisioning startup Wizi, a $ 4 million investment in LivQuik backed by Future Group and its partnership with Canadian firm Buckzy Payments to expand internationally.
âGoing forward, we intend to leverage our partnerships with fintech and banks and help them with fundraising processes more efficiently,â added Muthukumar.
âWe are constantly looking to build our platform and look for organic and inorganic opportunities. As the opportunity arises to provide better capabilities to our customers, we are open to such an acquisition, âhe added, noting that more strategic partnerships are in line. He also said that over the next six months, M2P will integrate all of its acquisitions and partnerships on its platform under one name.
Founded in 2014 by Madhusudanan R, Muthukumar A and Prabhu R, M2P Fintech, also known as YAP, is an API infrastructure company. Currently, it enables more than 200 companies to integrate financial products into their customer journeys in partnership with banks and other institutions and claims to be positive EBITDA since FY20 with 30% month-on-month growth on the other.
The startup supports rewards and instruments such as issuing gift cards, physical or virtual prepaid cards that its customers can customize for their user base. It also offers QR code solutions to payment companies.
M2P last raised a $ 10 million Series B led by Flourish Ventures and Omidyar Network. The startup has raised $ 15 million to date through funding rounds and has BEENEXT, Better Capital and HNIs such as Ashneer Grover from BharatPe, Alok Mittal from Indifi, Amrish Rau from Pine Lab and Kunal Shah from CRED, among others.
According to Statista, the fintech industry has the highest number (2K) of startups in India and among the 2K fintech startups, Payments, Lending and Wealth Tech rounds the top three rankings in the country. In addition, India is also home to around 1,263 digital lending startups, according to Inc42 Plus analysis, highlighting the need for debt management and collection with the API segment.