M1xchange Doubles Impact, achieves 150% Growth in H2 FY25
FinTech BizNews Service
Mumbai, April 16, 2025: M1xchange, India’s leading RBI-licensed Trade Receivables Discounting System (TReDS) platform for invoice discounting, has achieved a significant milestone, recording a total throughput of over Rs78,000 crore in FY24-25, demonstrating an impressive 100% year-on-year growth with total discounting of invoices exceeding Rs1,70,000 Crores. The platform has also seen a significant surge in its second half, with throughput increasing by 150%, rising from Rs32,000 crore in H1 to over Rs46,000 crore in H2. Additionally, M1xchange reached a new high in March 2025, discounting over Rs 10,000 crore in invoices within a single month, further cementing its position as a leader in digital supply chain financing.
India’s Micro, Small, and Medium Enterprises (MSME) sector faces a credit gap of Rs20-25 lakh crore, with only 20% of the country’s 64 million MSMEs having access to formal financing, according to a CRISIL report. Recognizing the role of TReDS in bridging this gap, the Government of India has mandated that businesses with a turnover of over Rs250 crore must register on TReDS, accelerating the platform’s adoption across the country. M1xchange's consistent growth is a testament to its pivotal role in addressing the liquidity challenges faced by MSMEs and enabling businesses to access timely working capital.
M1xchange’s throughput has more than doubled in the past two years, from Rs23,100 crore in FY23 to Rs43,000 crore in FY24. In FY24-25, the platform onboarded over 1,000 corporates including 800 in the second half of the year alone. Additionally, more than 20,000 MSMEs joined the platform during the year, highlighting growing trust in digital invoice discounting. This surge in adoption is driven by M1xchange’s innovative approach, including the launch of its Small-to-Small (S2S) financing initiative. This initiative has successfully integrated tier 2 and tier 3 MSMEs into the formal credit system, allowing them to access early payments at competitive rates.
M1xchange’s growth is supported by strong policy backing, increasing MSME adoption, and rising participation from corporates and financial institutions. The government’s proactive initiatives have been key in accelerating the adoption of TReDS, with a specific focus on ensuring MSMEs gain easier access to financing. Sundeep Mohindru, Promoter & Director of M1xchange, commented, “We are excited to have achieved such substantial growth in a short period. The government’s recognition of TReDS has played a crucial role in driving adoption, and we’ve worked hard to build a trusted ecosystem for MSMEs, corporates, and financial institutions to collaborate seamlessly. With Rs78,000 crore in invoice discounting and Rs10,000 crore in a single month, we are proud of the impact we are creating, and we remain committed to expanding financial access and further reducing financing costs.”
Furthermore, the government has mandated that 25% of annual procurement by central ministries, CPSEs, and departments should come from micro and small enterprises (MSEs). M1xchange’s partnerships with states like Andhra Pradesh, Maharashtra, Haryana, Goa, Madhya Pradesh, and Tamil Nadu ensure that MSMEs in these regions benefit from timely access to working capital and can leverage the TReDS platform.
One of the key advantages of using M1xchange is the significant reduction in financing costs for MSMEs. The platform helps reduce financing costs by 5-8%, which results in lower business expenses for MSMEs and translates into savings passed on to corporate customers. Moreover, M1xchange’s risk-mitigated framework, characterized by minimal defaults, has encouraged banks to offer financing to BBB-rated corporates, thereby broadening financing access to MSMEs across India.
M1xchange’s growth is also a reflection of the strong performance of key sectors in India’s growing economy. Industries such as Infrastructure, Electricals/Electronics, Automotive & Ancillaries, Textiles, Energy, and Agriculture now account for over 60% of M1xchange’s total throughput. This demonstrates the platform’s significant role in supporting diverse sectors and helping businesses in these industries access the capital they need to thrive.
M1xchange remains dedicated to maintaining its strong growth trajectory and is committed to further expanding its impact in the MSME financing space. With ongoing government support, rising adoption by both MSMEs and corporates, and the continuous development of innovative financial products, M1xchange is well-positioned to play an increasingly vital role in transforming the MSME financing landscape in India.
