Bridging the credit gap: The role of digital infrastructure in MSME financing
MSME financing in India: In FY24, India’s MSME-specified product exports accounted for 45.7 per cent of the country’s total exports, and the sector contributed 35.4 per cent to national manufacturing output. With over 63 million enterprises employing more than 120 million people, these small businesses are undeniably the support of the Indian economy. Yet, despite their economic importance, these enterprises continue to face an uphill battle when it comes to accessing timely and affordable formal credit.
Beyond Collateral: How behavioural data is transforming MSME financing in India
As India cements its position among the world’s fastest-growing economies, Micro, Small, and Medium Enterprises (MSMEs) continue to be the pillars of this forward march. With a significant contribution to employment and economic activity, MSMEs currently employ more than 110 million people and account for over 30% of the country’s GDP. As of May 2025, over 6.3 crore MSMEs have registered under the Udyam framework, marking a significant step toward formalization. Yet, despite playing an important role, MSMEs face a persistent credit paradox. For most MSMEs, obtaining timely, adequate, and affordable credit remains a significant challenge.
Filter Capital invests $10 mn in trade discounting platform M1xchange
Growth-stage investment firm Filter Capital on Monday said it has invested approximately USD 10 million (Rs 85 crore) in trade receivables discounting system platform M1xchange.
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.
Rs 25 lakh crore MSME credit gap: TReDS has sparked hope for small businesses, but what’s holding it back?
The Trade Receivables Discounting System (TReDS) platform has made notable progress in facilitating credit access to micro, small, and medium enterprises (MSMEs) in the country. However, industry experts and stakeholders believe that significant expansion is still required to further