IndiaMART, BEENEXT Invests Rs 38 Cr In TReDS Platform M1xchange
IndiaMART & BEENEXT, the existing shareholders in TReDS platform M1xchange, have invested Rs 38 crores (approximately) in the startup to acquire an additional stake of 3.4 per cent & 1.99 per cent, respectively.
The investment also marks the exit of the India Opportunities Fund of SIDBI Venture Capital Limited, an early investor in the company.
M1xchange | Online Invoice Discounting
Started by Sundeep Mohindru and Vivek Misra in 2017, M1xchange is a Gurugram-based TReDS (Trade Receivables Discounting System) platform that provides online invoice discounting and factoring solutions.
The startup aims to provide MSMEs supply-chain related cash flow finance at competitive rates through an open bid process through multiple financiers.
Speaking about the development, Sundeep Mohindru, CEO of M1xchange, said,
“M1xchange has improved liquidity for Indian MSMEs by enabling discounting of trade receivables at competitive rates. The discounting is based on credit rating of the MSME’s customer, and therefore, cost of finance is very cheap. This makes MSME more competitive in pricing to his customer. Banks have also benefitted from M1xchange as this has opened new avenue of business for banks, and the repayments of Trade receivables financed is fully digital, and the default on repayments is negligible.”
M1xchange, operated by Mynd Solutions Private Limited, is one of the three companies to set up the TReDS platform under the Payment and Settlement Act, 2007, to facilitate discounting of invoices and bills of exchange for MSMEs on a PAN India basis.
As per the startup, M1xchange, with an end-to-end digital process, has discounted invoices of over 13000 MSMEs spread over 1250 towns totalling over Rupees 34,000 crores.
Commenting on the investment, Hero Choudhary, Managing Partner at BEENEXT, said,
“We are big believers in financial inclusion – a core theme around M1xchange partnership. By bringing MSMEs into the formal credit economy through TReDS platform, we believe Indian businesses can unlock tremendous value for their vendors. At the same time, PSU, private sector banks can have diverse credit exposure resulting in more differentiated credit portfolio. At BEENEXT, we are very excited to be part of this journey.”
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