8i Ventures, an early-stage India-focused fund, decided the full exit of its investment in M2P Fintech as part of the company’s recent USD 100 million capital raise, which included both primary and secondary investments.
Since its initial investment of Rs 9.7 crores in M2P Fintech, 8i Ventures has realised an extraordinary 12 times return of Rs 115.9 crores in just 4.5 years, with an internal rate of return (IRR) of 131per cent. The investment in M2P Fintech has generated 1.27 times the entire corpus of Fund I on a pre-tax basis while utilizing just 10 per cent of its capital, said the company.
“Our early investment in M2P has proven to be transformative,” said Vikram Chachra, Founding Partner, 8i Ventures. “Identifying and supporting ventures that redefine categories before they become mainstream is central to our approach. M2P’s success has not only generated substantial returns but has also showcased our ability to leverage a small portion of our capital to create outsised impact.”
8i Ventures' Fund I, started in May 2019 and closed in July 2021, managed USD 15.5 million, which included USD 13 million in assets under management (AUM) and USD 2.5 million in co-invest AUM. 8i Ventures’ Fund I is currently up 2.5 times with an IRR of 37 per cent and a multiple on invested capital (MOIC) of 3.3 fold.
“8i was the first venture capital fund to believe in M2P Fintech’s vision of creating a world-class BaaS infrastructure platform from India for the global market. They have supported us in every funding round, from seed through Series B. For us, they feel more like cofounders than investors,” said Madhusudanan R, chief executive officer and co-founder, M2P Fintech Fintech.
The portfolio of 8i Ventures includes other companies such as Blue Tokai, Slice, Easebuzz, and Bbetter, all poised for initial public offerings (IPO) in the next 3-4 years, said the company. The anticipated IPO lineup features companies with impressive growth trajectories, including Blue Tokai, Easebuzz, and Slice.
