India’s leading TReDS Platform M1xchange plans to strengthen more than 13 lakhs of MSMEs, focusing on the Automobile, Sugar, Textile and heavy engineering sectors in Tamil Nadu through Trade Receivable Discounting System (TReDS).

A press meet regarding this was held in Coimbatore on Friday, and Roy Mathew Kurian, CBO and J.Sundara Prasanth, Manager-Corporate Sales of M1xchange addressed the press and media.

It was conveyed that the platform intends to offer early liquidity within 24 hours against invoices through its online bidding platform to Micro, Small and Medium Enterprises at a competitive rate in the state and offers a digital customer experience to MSMEs supported by a convenient and end-to-end digital process. This is a highly effective and efficient solution for the credit gap for MSMEs in India.



The RBI-approved TReDS platform M1xchange has on boarded 51+ financiers and recently has signed a memorandum of understanding with Tamil Nadu government to enable TReDS and help MSMEs operating in the region, get easy access to working capital against their invoices without any hard collateral or security and recourse. The platform has also signed an MOU with the Ministry of MSME, Government of India to onboard all Udyam registered MSMEs with an easy convenient process enabling them to leverage the full force of TReDS and access liquidity at the lowest interest rate in the country.



“Initiatives by the present government to promote MSMEs are encouraging. We are committed to the strengthening of the MSME ecosystem and bring a change in financial strength. The cost of funding outside the banking system is very high for MSMEs. With this unique proposition developed by M1xchange TReDS, MSME enterprises will be able to utilise TReDS for receivables discounting from their corporate Buyers at market-determined interest rates using an auction method in which multiple financial institutions bid. Corporate buyers in turn will be able to procure at better prices and manage their inventory adequately” said a spokesperson from M1xchange.



M1xchange has also started testing of ‘Small-Small Factoring’ product under the Reserve Bank of India’s (RBI’s) third cohort of the regulatory sandbox. The product aims at facilitating ‘early liquidity’ for MSME buyers and sellers. Once fully rolled out, the product is likely to help address the over $750-billion credit gap for MSMEs in India.