M1xchange Partners With AP Government To Boost MSME Financing
(MENAFN- KNN India)
New Delhi, Jul 2 (KNN) In a significant move to support the growth of Micro, Small & Medium Enterprises (MSMEs) in Andhra Pradesh, Delhi NCR-based M1xchange has signed a Memorandum of Understanding (MoU) with the state government.
This partnership aims to enhance financial access for local MSMEs through M1xchange's Trade Receivable Discounting System (TReDS) platform.
Sundeep Mohindru, director of M1xchange, emphasised the significance of this agreement, stating, "This MoU is a pivotal step towards empowering the MSME sector in Andhra Pradesh by streamlining access to working capital through TReDS. Our joint efforts aim to ensure that MSMEs receive timely payments, thereby improving their cash flow and fostering growth."
The TReDS platform is designed to provide MSMEs with rapid access to working capital against their invoices. Through an online bidding system, businesses can receive funds within 24 hours at competitive rates, without the need for collateral or recourse.
M1xchange has already made substantial strides in invoice discounting, facilitating transactions worth Rs 1,00,000 crore to date. The company projects a throughput value of Rs 72,000 crore by March 2025, a significant increase from Rs 43,300 crore in FY24.
In a recent innovation, M1xchange has expanded its services with 'M1xchange Small-Small,' a feature tested under the Reserve Bank of India's Regulatory Sandbox.
This new approach enables invoice financing for transactions between small enterprises, including both SME buyers and sellers, further broadening the scope of financial support for the MSME sector.
This partnership between M1xchange and the Andhra Pradesh government represents a crucial step in addressing the working capital needs of MSMEs, potentially catalysing growth and sustainability in this vital economic sector.
(KNN Bureau)
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