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The growth came on the back of increasing acceptance and understanding of TReDS among businesses. M1xchange said it has recorded a 100 per cent month-on-month increase in registrations from corporates and MSMEs alike.
One of the TReDs platforms licensed by the Reserve Bank of India (RBI) for invoice discounting, M1xchange on Friday said it has surpassed Rs 1 lakh crore in throughput (business volume). With a 100 per cent year-on-year growth, the company said it discounted invoices worth Rs 43,000 crores in FY24 vis-a-vis Rs 23,100 crores in the previous fiscal.
The growth came on the back of increasing acceptance and understanding of TReDS among businesses. M1xchange said it has recorded a 100 per cent month-on-month increase in registrations from corporates and MSMEs alike.
The company has agreements with multiple state governments, including Maharashtra Haryana, Goa, Madhya Pradesh and Tamil Nadu to enable liquidity to MSMEs while ensuring timely payments at a competitive rate.
Speaking on the milestone, Sundeep Mohindru, Promoter & Director, M1xchange, said, “This milestone is significant, but it merely scratches the surface of the vast opportunities ahead. By facilitating credit through competitive interest rates, prompt disbursals, and streamlined processes, we are creating immense opportunities to boost MSME growth in India.”
According to an EY report, the credit gap in India’s MSME sector stands at $530 billion while only around 14 per cent of 64 million MSMEs have access to formal credit.
Through TReDS, the cost of financing is reduced by 5-8 per cent, significantly lowering the business expenses for MSMEs, M1xchange said. “These savings are passed on to corporate customers, incentivizing both parties to adopt TReDS.”
The company has also expanded the scope of TReDS through Small-to-Small (S2S) financing that bridges the credit gap and integrates tier 2 and tier 3 MSMEs into the formal credit ecosystem. Its product ‘M1xchange Small-Small’ is a one-stop plug-and-play platform for cash-flow based financing to small MSME sellers on TReDS.
Other than M1xchange, two other TReDS platforms licensed by RBI are RXIL and Invoicemart. Earlier this month, global on-demand working capital platform C2FO’s TReDs platform C2treds went live, becoming the fourth platform to operate TReDS.