Chennai-based payment infrastructure startup Mylapay has raised $1 million as part of an ongoing funding round, marking a decisive step toward a larger Series A fundraise planned later this year. The fresh capital signals strong investor conviction in the company’s approach to building deep, compliance-led backend payment systems for banks and regulated financial institutions.
The round attracted continued backing from CDM Capital and Credit Saison, both of which supported the startup in earlier stages. The round also welcomed new participation from GrowthCap Ventures, led by Pratekk Agarwaal, alongside a group of strategic angel investors with experience across banking, fintech, and payment networks.
This latest infusion builds on $550,000 in seed capital that Mylapay raised earlier. With cumulative funding now crossing $1.55 million, the company plans to accelerate adoption of its acquiring platform, strengthen its technology stack, and sharpen its positioning ahead of a full Series A raise.
Building the rails behind digital payments
Mylapay focuses on a layer of fintech that rarely captures public attention but powers every card swipe and UPI transaction. The company develops backend payment processing systems that handle critical functions such as 3DS authorisation, transaction switching, clearing and settlement, and reconciliation. Banks, fintechs, and regulated payment institutions rely on this infrastructure to process transactions securely, meet compliance requirements, and scale transaction volumes without operational bottlenecks.
Founder Mohanraj Ravi started Mylapay to address a gap he observed in the Indian and global payments ecosystem. Many banks and financial institutions depend on fragmented legacy systems or multiple vendors for acquiring, reconciliation, and compliance workflows. That fragmentation increases costs, complicates audits, and slows down product launches.
Mylapay’s platform takes a modular approach that allows institutions to plug in only the components they need while maintaining a unified backend. This architecture supports rapid scaling and simplifies regulatory reporting, an advantage that resonates strongly with banks and licensed payment players.
Unified acquiring for cards and UPI
A major milestone for the company came with the rollout of its unified acquiring platform. The product allows banks and payment institutions to manage both card acquiring and UPI acquiring through a single integration. Instead of maintaining parallel systems for different payment rails, clients can run transactions, settlements, and reconciliations from one backend.
The platform handles throughput of more than 5,000 transactions per second, a capacity that positions Mylapay to serve high-volume issuers and acquirers. The system supports modular deployment, which lets clients activate features such as fraud controls, reconciliation engines, or settlement modules based on their specific needs.
Mylapay also holds certifications from major card networks including Visa, Mastercard, and RuPay. These certifications validate the platform’s compliance with global security and operational standards and open doors to partnerships with banks in multiple geographies.
How Mylapay plans to use the capital
The company has outlined a clear roadmap for deploying the $1 million raised in the current round. A significant portion of the funds will go toward strengthening core payment infrastructure. That effort includes performance optimisation, enhanced redundancy, and deeper security layers to support mission-critical payment flows.
Mylapay also plans to expand its product stack. The team intends to add advanced analytics, improved reconciliation tooling, and configurable compliance modules that cater to regulatory nuances across markets. These additions aim to help banks reduce operational overhead while improving visibility into transaction lifecycles.
Another key focus area involves deeper integrations with banks and payment aggregators. By embedding more closely into partner ecosystems, Mylapay aims to shorten onboarding timelines and improve reliability for large-scale deployments. The company views these integrations as essential for long-term contracts with regulated institutions.
International ambitions beyond India
Alongside domestic growth, Mylapay has set its sights on international expansion across the Middle East, Africa, and the United States. These regions present strong demand for modern acquiring infrastructure as banks and fintechs modernise legacy systems and expand digital payment offerings.
In the Middle East and Africa, many markets show rapid growth in card usage and real-time payments but still rely on fragmented backend systems. Mylapay plans to position its platform as a compliant, scalable alternative that supports regional payment schemes alongside global networks.
The US expansion focuses on partnerships with payment institutions and fintechs that require flexible acquiring infrastructure without building everything in-house. Mylapay’s modular design and certifications provide a foundation for entering this highly regulated market with confidence.
Investor confidence in infrastructure-first fintech
Investors backing the round highlighted Mylapay’s focus on infrastructure as a differentiator in a crowded fintech landscape. While consumer-facing payment apps dominate headlines, infrastructure players capture durable value by embedding deeply into financial systems.
GrowthCap Ventures and strategic angels see long-term potential in Mylapay’s ability to serve as a neutral technology layer for banks, fintechs, and payment processors. The continued participation from CDM Capital and Credit Saison reinforces confidence in execution and market demand.
The road to Series A
With this bridge round, Mylapay aims to demonstrate stronger customer traction, higher transaction volumes, and expanded geographic reach ahead of its Series A raise. The company plans to use the coming months to convert pilot deployments into long-term contracts and showcase scalability across markets.
As digital payments continue to grow in complexity and volume, infrastructure players like Mylapay play a crucial role in keeping the ecosystem reliable and compliant. By focusing on backend excellence rather than consumer branding, the Chennai-based startup positions itself as a foundational layer for the next phase of global payments growth.
Also Read – Why Building a Startup Is Not for Everyone, Despite the Hype