M1xchange 1st TReDS Platform to cross 1L Throughput in a Single FY

The Trade Receivables Discounting System (TReDS) was envisioned as a structural reform to address one of India’s most persistent economic challenges that is delayed payments to MSMEs. Over the years, the platform has evolved from a policy-backed concept into a critical pillar of India’s working capital infrastructure.

M1xchange, TReDS platform, has surpassed ₹1,00,000 crore in annual invoice discounting throughput in FY25–26, marking a significant milestone in India’s digital trade finance landscape.

This achievement has been driven by widespread adoption among MSMEs across more than 2,500 locations nationwide, reflecting growing confidence in structured receivables financing.

Since inception, the platform has facilitated cumulative invoice discounting of over ₹2,65,000+ crore. M1xchange currently connects 70,000+ MSMEs with more than 5,000 corporate buyers and 70+ banks and NBFCs, creating a robust and integrated financing ecosystem.

Recent Union Budget measures have further strengthened the institutional role of TReDS in nurturing ‘CHAMPION SMEs’. Initiatives such as credit guarantee support for invoice discounting and the integration of GeM with TReDS underscore the government’s commitment to formalising and scaling receivables financing across the MSME sector.

Why This Matters

India’s MSME sector contributes nearly 30% to GDP and close to half of exports, yet access to timely working capital has historically remained constrained. A significant portion of MSME liquidity remains locked in receivables due to elongated payment cycles, particularly in large corporate and public-sector supply chains.

Crossing ₹1 Lakh Crore in invoice discounting throughput signals three critical shifts:

• Trust in digital receivables financing has scaled
• TReDS is moving from adoption to embedded usage
• Liquidity is flowing faster, more transparently, and at institutional scale

This is no longer a niche financing mechanism, it is becoming core financial infrastructure.

Union Budget 26: The Policy Environment Accelerating Momentum

Under Union Budget 2026, recent regulatory developments have played a catalytic role in accelerating TReDS adoption:

• Mandatory settlement of MSME procurement through TReDS by CPSEs
• Credit guarantee support for TReDS transactions via CGTMSE
• Integration of TReDS with GeM and other digital public infrastructure
• Policy focus on cash-flow-based lending over balance-sheet lending

These reforms have strengthened confidence across all stakeholders: MSMEs, corporates, and financiers reducing risk, improving transparency, and unlocking volume-led growth.

M1xchange’s ₹1 Lakh Crore milestone: a direct outcome of this policy-to-platform alignment.

This milestone represents far more than a number for MSMEs.

It reflects:

• Faster realisation of receivables, often within 24 hours
• Non-recourse financing that improves balance-sheet health
• Predictable cash flows that enable production continuity and growth
• Reduced dependence on informal or high-cost credit

Liquidity, when delivered at speed and scale, becomes a growth enabler not just a survival mechanism.

Impact on Corporates and Supply Chains

Structured receivables financing through TReDS strengthens supply chains for corporates and CPSEs by:

• Improving supplier confidence and continuity
• Standardising payment processes
• Enhancing ESG and governance outcomes
• Reducing operational and reconciliation friction

As procurement ecosystems grow more complex, liquidity-led supplier engagement is emerging as a strategic advantage.

A Scalable Opportunity for Financiers

From a financial system perspective, the milestone underscores the emergence of TReDS as:

• A high-velocity, short-tenor asset class
• A priority-sector-aligned deployment channel
• A data-backed, risk-mitigated financing model

Policy-backed guarantees and verified transaction data, receivables financing is increasingly positioned as a stable and scalable opportunity for lenders.

M1xchange’s Role in Building Market Infrastructure

Crossing ₹1 Lakh Crore in throughput reflects M1xchange’s continued focus on:

• Regulatory compliance and transparency
• Technology-led efficiency
• Ecosystem collaboration across MSMEs, corporates, and financiers

Building trust at scale

The milestone is not an endpoint, it is a signal that India’s receivables financing market is entering its next phase of institutional growth.

Looking Ahead: Liquidity as a Strategic Lever

As India’s economy expands and supply chains deepen, working capital efficiency will play a decisive role in competitiveness.

TReDS is no longer about early payments alone. It is about strengthening MSME resilience, enhancing corporate supply-chain stability, enabling lenders to deploy capital with confidence, and translating policy intent into real economic impact.

When liquidity flows efficiently, growth follows naturally. Crossing the ₹1 Lakh Crore milestone reinforces M1xchange’s commitment to shaping a faster, more transparent, and inclusive working capital ecosystem, one invoice at a time.