Buoyed by supportive government policies and a sharp rise in micro, small and medium enterprises (MSME) participation, M1xchange reported a total throughput of over Rs 78,000 crore in FY24-25. The RBI-licensed TReDS platform saw a 100 per cent year-on-year (YoY) increase in invoice discounting, driven by the onboarding of over 20,000 MSMEs and 1,000 corporates, alongside policy mandates requiring large businesses to adopt digital financing tools.
In the second half of FY25, M1xchange’s throughput rose by 150 per cent, increasing from Rs 32,000 crore in H1 to over Rs 46,000 crore in H2. In March 2025, the platform processed invoice discounting worth over Rs 10,000 crore.
India’s MSME sector faces a credit gap of Rs 20-25 lakh crore, with only 20 per cent of the country’s 64 million having access to formal financing, according to a Crisil report. With TReDS’ role in bridging this gap, the government has mandated that businesses with a turnover of over Rs 250 crore must register on TReDS.
Despite impressive topline growth, M1xchange’s latest performance shows the deeper structural challenges in India’s MSME credit landscape. While these numbers signal strong traction, they also highlight the disproportionate reliance on a single platform to bridge a staggering Rs 20 to 25 lakh crore credit gap for MSMEs—of which only a fraction currently benefits from formal financing channels.
M1xchange’s throughput has more than doubled in the past two years, from Rs 23,100 crore in FY23 to Rs 43,000 crore in FY24. In FY24-25, the platform onboarded over 1,000 corporates, including 800 in the second half of the year alone. Additionally, more than 20,000 MSMEs joined the platform during the year, the company claimed.
Sundeep Mohindru, Promoter & Director of M1xchange, commented, “The government’s recognition of TReDS has played a crucial role in driving adoption, and we’ve worked hard to build a trusted ecosystem for MSMEs, corporates, and financial institutions to collaborate seamlessly. With Rs 78,000 crore in invoice discounting and Rs 10,000 crore in a single month, we are proud of the impact we are creating, and we remain committed to expanding financial access and further reducing financing costs.”