Latest news with #M1xchange
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Business Standard
5 days ago
- Business
- Business Standard
The role of TReDS is set to go up significantly: M1xchange's Mohindru
Sundeep Mohindru, founder-director of M1xchange, interacted with Raghu Mohan via email on the issues facing MSMEs premium Raghu Mohan New Delhi Listen to This Article M1xchange, the Trade Receivables e-Discounting System (TReDS) platform for invoice discounting, in FY25 recorded business of over ₹78,000 crore, up 100 per cent from the previous year. Higher US tariffs are expected to impact micro, small and medium enterprises (MSMEs); and TReDS' role in financing the sector will become more critical. Sundeep Mohindru, founder-director of M1xchange, interacted with Raghu Mohan via email on the issues facing MSMEs. Edited excerpts:
Economic Times
19-06-2025
- Business
- Economic Times
How M1xchange is revolutionising MSME financing in India
Live Events M1xchange has emerged as a galvanising force in financing for Indian MSMEs, fundamentally transforming how micro, small, and medium enterprises access working capital through its innovative Trade Receivables Discounting System (TReDS) platform. As an RBI-approved digital marketplace, M1xchange has successfully bridged the critical financing gap besets India's MSME impact of M1xchange is reflected in its growth trajectory and scale of operations. The platform has facilitated bill discounting worth over Rs 170,000 crore, demonstrating its role in unlocking liquidity for thousands of small businesses across the country. It has onboarded an impressive ecosystem comprising over 65 banks and non-banking financial companies (NBFCs), and 50,000-plus MSMEs, creating a comprehensive network spanning multiple geographies and industries. Over 2,500 corporates, including IndianOil, NTPC, Hindustan Aeronautics Ltd, Mother Dairy, Bharat Petroleum, and TVS, are registered on the of M1xchange's foremost contributions has been addressing the chronic problem of delayed payments,which significantly affect MSME cashflows. By providing a digital marketplace where MSMEs can sell their trade receivables to financial institutions at competitive rates, the platform has enabled businesses to convert outstanding invoices into immediate working capital. This transformation is particularly crucial for MSMEs that struggle with cashflow constraints while waiting for corporate buyers to settle user-friendly digital infrastructure of M1xchange has also democratised MSMEs' access to formal financing. The transaction process begins when MSME suppliers raise invoices, and extends through the entire discounting cycle, eliminating bureaucratic hurdles and reducing processing times. MSMEs can now access collateral-free invoice financing within 24 hours, a remarkable improvement from conventional lending timelines.M1xchange's competitive advantage lies in its ability to offer MSMEs favourable discount rates ranging between 7-10%, which are substantially lower than the 12-20% interest rates they'd have to pay through traditional financing channels. This cost reduction directly translates into improved profitability and business sustainability for small performance metrics underscore M1xchange's growing influence. In FY24 alone, it facilitated invoice discounting worth Rs 43,000 crore, a significant jump from Rs 23,100 crore in FY23. This exponential growth reflects increasing adoption among MSMEs, corporates, and financial institutions, signalling a fundamental shift in how India's small business sector is approaching working capital platform's success extends beyond mere transaction volumes. By creating a transparent, efficient, and secure marketplace for trade receivables, M1xchange has also enhanced the creditworthiness perception of MSMEs among financial institutions. This improved access to formal credit channels has enabled MSMEs to scale, invest in technology, and be more competitive in domestic and international the magnitude of positive change it has introduced has earned M1xchange a slew of laurels, such as the MSME Enabler Award for Banking & Financing at the ET MSME Awards 2024 — India's most influential MSME awards initiative. Others include 'Fintech Leader of the Year' at the Bharat Fintech Summit 2025 and 'Best Fintech For Serving MSMEs' at the FICCI MSME Ecosystem 2022 awards.M1xchange is more than a financing platform: it embodies the digital transformation of India's MSME sector. By leveraging technology to solve traditional financing challenges, it has created a sustainable ecosystem that supports entrepreneurship, promotes financial inclusion, and contributes significantly to India's economic more winner vignettes of the ET MSME Awards , keep an eye on this space.
Time of India
19-06-2025
- Business
- Time of India
How M1xchange is revolutionising MSME financing in India
M1xchange has emerged as a galvanising force in financing for Indian MSMEs, fundamentally transforming how micro, small, and medium enterprises access working capital through its innovative Trade Receivables Discounting System (TReDS) platform. As an RBI-approved digital marketplace, M1xchange has successfully bridged the critical financing gap besets India's MSME ecosystem. The impact of M1xchange is reflected in its growth trajectory and scale of operations. The platform has facilitated bill discounting worth over Rs 170,000 crore, demonstrating its role in unlocking liquidity for thousands of small businesses across the country. It has onboarded an impressive ecosystem comprising over 65 banks and non-banking financial companies (NBFCs), and 50,000-plus MSMEs, creating a comprehensive network spanning multiple geographies and industries. Over 2,500 corporates, including IndianOil, NTPC, Hindustan Aeronautics Ltd, Mother Dairy, Bharat Petroleum, and TVS, are registered on the platform. One of M1xchange's foremost contributions has been addressing the chronic problem of delayed payments,which significantly affect MSME cashflows. By providing a digital marketplace where MSMEs can sell their trade receivables to financial institutions at competitive rates, the platform has enabled businesses to convert outstanding invoices into immediate working capital. This transformation is particularly crucial for MSMEs that struggle with cashflow constraints while waiting for corporate buyers to settle payments. The user-friendly digital infrastructure of M1xchange has also democratised MSMEs' access to formal financing. The transaction process begins when MSME suppliers raise invoices, and extends through the entire discounting cycle, eliminating bureaucratic hurdles and reducing processing times. MSMEs can now access collateral-free invoice financing within 24 hours, a remarkable improvement from conventional lending timelines. M1xchange's competitive advantage lies in its ability to offer MSMEs favourable discount rates ranging between 7-10%, which are substantially lower than the 12-20% interest rates they'd have to pay through traditional financing channels. This cost reduction directly translates into improved profitability and business sustainability for small enterprises. Live Events Recent performance metrics underscore M1xchange's growing influence. In FY24 alone, it facilitated invoice discounting worth Rs 43,000 crore, a significant jump from Rs 23,100 crore in FY23. This exponential growth reflects increasing adoption among MSMEs, corporates, and financial institutions, signalling a fundamental shift in how India's small business sector is approaching working capital management. The platform's success extends beyond mere transaction volumes. By creating a transparent, efficient, and secure marketplace for trade receivables, M1xchange has also enhanced the creditworthiness perception of MSMEs among financial institutions. This improved access to formal credit channels has enabled MSMEs to scale, invest in technology, and be more competitive in domestic and international markets. Unsurprisingly, the magnitude of positive change it has introduced has earned M1xchange a slew of laurels, such as the MSME Enabler Award for Banking & Financing at the ET MSME Awards 2024 — India's most influential MSME awards initiative. Others include 'Fintech Leader of the Year' at the Bharat Fintech Summit 2025 and 'Best Fintech For Serving MSMEs' at the FICCI MSME Ecosystem 2022 awards. M1xchange is more than a financing platform: it embodies the digital transformation of India's MSME sector. By leveraging technology to solve traditional financing challenges, it has created a sustainable ecosystem that supports entrepreneurship, promotes financial inclusion, and contributes significantly to India's economic growth. For more winner vignettes of the ET MSME Awards , keep an eye on this space.
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Business Standard
08-06-2025
- Business
- Business Standard
TReDS platform M1xchage eyes IPO in 3-5 years, aims ₹1.25 trn biz in FY25
M1xchage, a leading RBI-licensed Trade Receivables Discounting System (TReDS) platform, which is witnessing an 80-90 per cent annual growth in business, is planning to go public in the next 3-5 years. "Although the company has been profitable for the last two years, the initial public offering (IPO) is still a few years away. We would look at an IPO in 3-5 years, depending on market conditions," M1xchange Chief Executive Officer Sundeep Mohindru told PTI. M1xchage, which started operations in 2017, is aiming to close the financial year with a business of Rs 1.25 trillion. Factoring as a business is picking up very well as it is win-win for the banks, buyers and sellers, he said, adding that the business has been witnessing a growth of 80-90 per cent on an annual basis. During the current financial year, he said the business is expected to reach Rs 1.25 trillion. Last year, the volume was to the tune of Rs 78,000 crore as compared to Rs 43,000 crore in FY24. The platform is facilitating invoice financing of nearly Rs 10,000 crore each month, enabling MSMEs with faster access to working capital and driving adoption across corporates, vendors, and financial institutions. India's supply chain finance sector is witnessing accelerated growth, driven by the need for faster-working capital access for MSMEs and digital transformation across industries. With the Reserve Bank of India's (RBI's) TReDS framework, digital platforms are increasingly becoming the backbone of MSME financing, he said. The platform facilitates discounting of invoices and bills of exchange, or trade receivables of micro, small and medium enterprises from corporate and other buyers, through multiple financiers such as banks and non-bank entities. Factoring or invoice discounting refers to transfer in ownership or financing of accounts by a third party or factor at a discount for commission and fees, wherein the factor makes a profit upon the settlement of the debt. About funding for business growth, Mohindru said the company is well capitalised at the moment to drive exponential growth. Recently, growth-stage investment firm Filter Capital invested about $10 million (Rs 85 crore) in trade receivables discounting system platform M1xchange. Prior to this, Jindal Stainless, leading stainless steel manufacturer, along with its wholly owned subsidiary, Jindal Stainless Steelway Ltd, acquired a 9.62 per cent stake in M1xchange. This deal involved a combination of primary capital and a secondary purchase of shares from existing shareholders. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Economic Times
08-06-2025
- Business
- Economic Times
TReDS platform M1xchage plans IPO in 3-5 years
M1xchage, a leading RBI-licensed Trade Receivables Discounting System (TReDS) platform, which is witnessing an 80-90 per cent annual growth in business, is planning to go public in the next 3-5 years. ADVERTISEMENT "Although the company has been profitable for the last two years, the initial public offering (IPO) is still a few years away. We would look at an IPO in 3-5 years, depending on market conditions," M1xchange Chief Executive Officer Sundeep Mohindru told PTI. M1xchage, which started operations in 2017, is aiming to close the financial year with a business of Rs 1.25 lakh crore. Factoring as a business is picking up very well as it is win-win for the banks, buyers and sellers, he said, adding that the business has been witnessing a growth of 80-90 per cent on an annual basis. During the current financial year, he said the business is expected to reach Rs 1.25 lakh crore. Last year, the volume was to the tune of Rs 78,000 crore as compared to Rs 43,000 crore in FY24. The platform is facilitating invoice financing of nearly Rs 10,000 crore each month, enabling MSMEs with faster access to working capital and driving adoption across corporates, vendors, and financial institutions. ADVERTISEMENT India's supply chain finance sector is witnessing accelerated growth, driven by the need for faster-working capital access for MSMEs and digital transformation across industries. With the Reserve Bank of India's (RBI's) TReDS framework, digital platforms are increasingly becoming the backbone of MSME financing, he said. ADVERTISEMENT The platform facilitates discounting of invoices and bills of exchange, or trade receivables of micro, small and medium enterprises from corporate and other buyers, through multiple financiers such as banks and non-bank entities. Factoring or invoice discounting refers to transfer in ownership or financing of accounts by a third party or factor at a discount for commission and fees, wherein the factor makes a profit upon the settlement of the debt. ADVERTISEMENT About funding for business growth, Mohindru said the company is well capitalised at the moment to drive exponential growth. Recently, growth-stage investment firm Filter Capital invested about USD 10 million (Rs 85 crore) in trade receivables discounting system platform M1xchange. ADVERTISEMENT Prior to this, Jindal Stainless, leading stainless steel manufacturer, along with its wholly owned subsidiary, Jindal Stainless Steelway Ltd, acquired a 9.62 per cent stake in M1xchange. This deal involved a combination of primary capital and a secondary purchase of shares from existing shareholders. (You can now subscribe to our ETMarkets WhatsApp channel)
