Fintech startup M2P, which specialises in providing digital banking infrastructure to fintech firms as well as banks, has acquired credit card sourcing startup Wizi, the cofounder of M2P, Madhusudanan R, told ET. The acquisition is expected to strengthen its plug and play credit card platform.
Sources close to the development said that the deal was a mix of cash and stock, and values Wizi at around $5 million. M2P founders declined to comment on the deal specifics.
Chennai-based M2P, also known as Yap, earlier this year launched a programmable credit card platform that allows banks and fintech firms to onboard and use Application Programming Interfaces (APIs) to offer customizable corporate and commercial credit cards to its customers.
The acquisition is aimed at strengthening this piece, said Madhusudanan.
Wizi is a credit card-focused fintech firm that, through its programs, provides digital services to credit card customers of banks.
It manages both sourcing and management of credit cards, be it benefits, offers, managing revolving credit and more. The company said it has 300,000 users through its app.
“We rolled out the Programmable credit card stack in March this year and in the first 6 months we signed up over half a dozen Banks; we realized most banks in the card issuance space did not have digital origination capabilities coupled with most incumbent products lacking basic mobile interfaces for customers to manage their credit card account – Wizi serves both these gaps elegantly,” Madhusudanan said.
Wizi’s three co-founders and its about 20 employees are set to join M2P’s team, he added.
M2P raised $10 million led by Flourish Ventures and Omidyar Network in its last funding round in March 2021.
The startup has raised $15 million till date and counts Beenext, Better Capital and angel backers such as BharatPe’s Ashneer Grover, Indifi’s Alok Mittal, Pine Lab’s Amrish Rau and Cred’s Kunal Shah, as investors.
The firm was founded in 2014 by Madhusudanan, Muthukumar A and Prabhu R.
The startup specialises as an API infrastructure company that helps businesses connect and roll out their own branded products.
The firm said it works with over 500 fintech firms, internet platforms, banks and financial institutions as product providers, offering end-to-end program management services across services including debit, credit, prepaid, QR, Unified Payments Interface and other payment solutions.
Its API products have been utilized by top tech companies such as Ola, Slice, Cred, Razorpay, among others, it said.
