M1xchange Surpasses Rs 1 Lakh Crore Business On Treds Platform

2024-06-01 02:17:15

(MENAFN- KNN India) New Delhi, June 1 (KNN)
M1xchange, one of the Trade Receivables Discounting System (TReDS) platforms licensed by the Reserve bank of India, has achieved a major milestone by surpassing Rs 1 lakh crore in throughput or business volume, the company announced on Friday.

In the fiscal year 2023-24, M1xchange discounted invoices worth Rs 43,000 crores, marking a 100 per cent year-on-year growth compared to Rs 23,100 crores in the previous fiscal year.

This remarkable growth can be attributed to the increasing acceptance and understanding of the TReDS platform among businesses.

M1xchange has witnessed a 100 per cent month-on-month increase in registrations from corporates and MSMEs (Micro, Small and Medium Enterprises) alike.

The company has established agreements with multiple state governments, including Maharashtra, Haryana, Goa, Madhya Pradesh, and Tamil Nadu, to enable liquidity for MSMEs while ensuring timely payments at competitive rates.

Sundeep Mohindru, Promoter & Director of M1xchange, expressed his excitement about this milestone, stating, "This 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 the 64 million MSMEs have access to formal credit.

M1xchange claims that through the TReDS platform, the cost of financing is reduced by 5-8 per cent, significantly lowering business expenses for MSMEs.

In addition to its core TReDS offering, M1xchange has expanded its scope through 'M1xchange Small-Small,' a one-stop platform for cash-flow based financing to small MSME sellers on TReDS, bridging the credit gap and integrating tier 2 and tier 3 MSMEs into the formal credit ecosystem.

(KNN Bureau)

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