[Funding] Fintech Infra Provider YAP Raises $10 Million in Series B Financing Round

YAP, the Chennai-headquartered fintech infrastructure provider, has raised Series B financing of $10 million. The round was co-led by Flourish Ventures and Omidyar Network India. Existing investors – BEENEXT, 8i Ventures, DMI Group - The Sparkle Fund and Better Capital also participated in the financing round. This is the second fundraising for YAP in less than a year. It reflects the potential of the startup as well as the segment - B2B Fintech infrastructure.

With the investment, the company aims to strengthen its technical team. It also aims to reach out to new markets in Bangladesh, Saudi Arabia, Oman, Egypt, Vietnam and Indonesia. YAP currently serves companies in India, Nepal, the United Arab Emirates, Australia, New Zealand and the Philippines.

About YAP

The startip helps businesses and platforms to offer their own branded financial services. It does this through partnerships with financial institutions or fintech companies alongwith regulatory compliance. The 6-year-old company, often referred to as “Bank-in-a-Box” aims to enable digital payment infrastructure for businesses. It has a state-of-the-art modular API platform that enables digital platforms, fintech companies and offline businesses to bring customised solutions to their end-users by connecting them with other fintech platforms, payment infrastructures such as India’s UPI, incumbent banks and Non-Bank Financial Companies.

Talking about the investment, Madhusudanan R, Co-founder, YAP, stated the company has the ability to expand. “The tailwinds from the pandemic presented a shot in the arm for our business with across-the-board adoption of our API capabilities. At one end, we have over 20 banks accelerating their efforts to partner. Further, we have over 300 brands and fintech looking to embed financial products into their user journey,” he said. He also added that YAP can cater to new cohorts of distributors. It is adding more firms to embed financial services into their digital platforms.

From the investors

Flourish Ventures has invested in embedded finance infrastructure in India for the first time. Anuradha Ramachandran, Investments Director, stated that the platform provides the rails on which fintech and incumbents can build new cases for the underserved segment. They can further deliver financial services in a cost-effective way. Dirk Van Quaquebeke, Managing Partner at BEENEXT, said that they have invested in YAP as the latter has been constantly innovating “to become one of the leading players in the open API banking industry on par with best in class global companies.”

“In the rapidly digitising financial ecosystem in India, YAP is an API infrastructure platform that works with businesses to build new use cases and provide a superior customer experience in a regulatory compliant manner. At Omidyar Network India, we believe that Digital Enablers such as YAP can catalyze financial inclusion and also drive usage of financial products across the Next Half Billion - the 500 million Indians expected to come online for the first time via their mobile phones. The YAP team has shown an evolving understanding of this space. We are excited to partner them in their journey” said Amol Warange, Director, Omidyar Network India.