: MSMEs’ M1xchange sees over 100% growth in biz in FY’23 #FinanceIndia #StockMarketNEWS #Business Press Trust of India Kolkata M1xchange, an electronic platform for discounting trade receivables

@stockMarketNEWS Wed 04 Jan, 2023

Posted in: #FinanceIndia #StockMarketNEWS #Business

MSMEs’ M1xchange sees over 100% growth in biz in FY’23 #FinanceIndia #StockMarketNEWS #Business
Press Trust of India

Kolkata

M1xchange, an electronic platform for discounting trade receivables for MSMEs, on Thursday said the growth in the total value of bill discounting through its system will be more than double to Rs 25,000-30,000 crore in the current financial year, a company official said on Thursday.

The growth will be backed by adoption of the system by micro, small and medium enterprises (MSMEs), he said.

Trade Receivable Discounting System (TReDS) is an institutional mechanism set up in order to facilitate the discounting of invoices for MSMEs from corporate buyers through multiple financiers.

M1xchange, which has got Amazon as an investor with million in 2021, has signed MoUs with state governments and onboarded 50 banks and NBFCs on its platform to offer receivable financing to MSMEs, the company official said.

“The product to help address the credit gap for MSMEs in India is estimated at over 0 billion. Till date, we have facilitated bill discounting to over 15,000 MSME suppliers spread across 1,400 towns in the country,�? M1exchange director (sales) Moulinath Ganguly said.

Since 2017, three electronic bill discounting platforms have been established to help MSMEs through seamless payments at the best discounting rate discovered through competitive bidding.

The total cumulative transaction value could reach Rs 75,000-90,000 crore in 2023 by the three players, the company official said.

“In Bengal, 1,500-2,000 MSMEs are active on the platform. The MSMEs are getting their receivable at a discounting rate band of 6.3-10% per annum depending on the credit rating of the corporate houses they have supplied their goods,�? he said.

M1xchange has also signed an MOU with the Ministry of MSME for the ‘Udyam’ portal.

All Udyam registered MSMEs will be able to access M1xchange platform, which will “enable them to leverage TReDS and access liquidity at the lowest possible cost in the country�?, the company officialsaid.

“We expect the company will be cash positive by this year,�? Ganguly said when asked about the break-even of M1exchange.