TReDS platform M1xchange has raised $4.5 million (about Rs 33 crore) in funding from BEENEXT Asia, Singapore, and existing investor Mayfield. The funds will be used by the online trade exchange platform to expand its network across India and emerge as a comprehensive supply chain finance leader, a statement said.
TReDS is an online mechanism for facilitating the financing of trade receivables of MSMEs through multiple financiers. It also enables discounting invoices of exchange of MSME sellers against large corporates.
"The pandemic has had a profound effect on supply chains, businesses, and economies. In the last few months, a substantial positive movement has been felt for growth in business volumes versus the previous quarter, and this is also reflected in the surge in volumes on M1xchange (TReDS)," Sundeep Mohindru, CEO of M1xchange, said.
He added that MSMEs across 352 cities have logged into TReDS platform since the pandemic and have discounted invoices at a rate of interest ranging between 4.75 percent per annum and eight percent per annum. "
(About) 60 percent of such MSMEs are from Tier III and IV cities and are able to take the benefit of this digital revolution. In coming days, this secured marketplace for receivables financing will be integrated with other government digital initiatives," he said.
Maple Capital Advisors, a Delhi-based investment banking firm, acted as the financial advisors for this round of funding. "M1xchange plans to utilise the investment over a few years to enhance its market reach and further evolve the technology for ease of use.
The newer models of supply chain financing and the resultant technology will be deployed in coming months," Mohindru said. Started in 2017 under licence from the Reserve Bank of India, M1xchange has scaled up to discount invoices worth more than Rs 10,000 crore.
"M1xchange continues to be the leader in this space, and the only TReDS platform who is attracting international investor interest. Continued investor participation validates this large market opportunity. This round should go a long way in enhancing technology development and personnel to achieve greater scale," said Vikram Godse, Partner and Managing Director, Mayfield Fund India.