Financial infrastructure provider M2P Fintech has announced the acquisition of digital identity verification startup Syntizen to bolster its Know Your Customer (KYC) services.
Through the acquisition, India-based M2P Fintech hopes to offer fully integrated Aadhaar-based customer onboarding solutions to fintechs.
Syntizen offers e-KYC solutions to finance companies such as Indiabulls Homeloans, Manappuram Finance, and Muthoot Finance, among others.
Several state governments have also deployed its Aadhaar-based verification platform.
The terms of the transaction were not disclosed but Moneycontrol reported that the deal was a mix of cash and stock valued between $10 and $12m.
Speaking to the publication, M2P Fintech co-founder and CEO Madhusudanan R said: “With this acquisition, we can now offer a KYC stack to our customers. Additionally, Syntizen over the years has done a lot of work around Aadhar enabled services and the KYC platform, and governments use its stack for benefit disbursement for state-run programs.”
“The acquisition also gives us an opportunity to overlay the Syntizen stack on top of our infrastructure to work with state governments and units,” M2P Fintech’s chief added.
“Representatives no longer need to be colocated to facilitate screening, opening up a wider market. Joining M2P Fintech gives us an opportunity to accelerate and scale geographically while providing an integrated KYC solution as part of the platform of services offered to M2P’s rapidly growing clientele,” Syntizen CEO Vamsi Kotte said.
Kotte will take up a product leadership role in M2P Fintech and continue to work on Syntizen.
Earlier this year, M2P Fintech raised $56m in its Series C1 funding round led by US private equity firm Insight Partners at a $600m valuation.
