8i Ventures, early-stage India-focused VC fund, today announced the full exit of its investment in M2P Fintech as part of the company's recent $100 million capital raise, which included both primary and secondary investments. This successful exit underscores 8i Ventures' commitment to identifying and nurturing high-potential ventures from their inception.
Since its initial investment of INR 9.7 crores in M2P Fintech, 8i Ventures has realized an extraordinary 12x return of INR 115.9 crores in just 4.5 years, with an internal rate of return (IRR) of 131%. The investment in M2P Fintech has generated 1.27x the entire corpus of Fund I on a pre-tax basis while utilizing just 10% of its capital. This highlights the strong performance of M2P Fintech and its position as a "power law winner" in 8i's portfolio.
"Our early investment in M2P has proven to be transformative," said Vikram Chachra, Founding Partner of 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 outsized impact."
"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 cofounder, M2P Fintech Fintech.
8i Ventures' Fund I, launched in May 2019 and closed in July 2021, managed $15.5 million, which included $13 million in assets under management (AUM) and $2.5 million in co-invest AUM. This exit reaffirms the firm's strategy of investing in early-stage companies with the potential to become market leaders. 8i Ventures' Fund I is currently up 2.5x with an IRR of 37% and a Multiple On Invested Capital (MOIC) of 3.3x.
The portfolio of 8i Ventures includes other promising companies such as Blue Tokai, Slice, Easebuzz, and Bbetter, all poised for solid IPOs in the next 3-4 years. The anticipated IPO lineup features companies with impressive growth trajectories, including Blue Tokai, Easebuzz, and Slice. The youngest contender, Bbetter, is already profitable and aims to achieve a $10 million run rate this year while doubling its revenues.
In 2022, 8i Ventures marked the first close of its second fund at $25 million, joining a growing list of private investors to have raised a meaningful India-dedicated fund despite global headwinds. Earlier this year, 8i Ventures launched 'Origami', a $10 Million seed funding program to fuel India's start-ups. |
