M1xchange has seen a growing adoption of its Small-to-Small deep-tier financing platform, accelerating MSME financing across India; Targets to double the volumes by FY27
FinTech BizNews Service
Mumbai, 25 May 2026: M1xchange, an RBI-licensed TReDS platform, announced that its Small-to-Small (S2S) deep-tier financing platform has crossed Rs1,400 crore in year-to-date throughput, signalling growing adoption of MSME-to-MSME trade financing across India. The platform currently records monthly transaction volumes of approximately Rs100 crore, reflecting sustained momentum in deep-tier supply chain financing. The milestone comes at a time when India’s MSME credit ecosystem is witnessing growing adoption of formal, data-driven financing models, as businesses seek structured access to working capital to support growth and strengthen supply chain resilience.
The S2S platform extends the TReDS framework beyond traditional corporate-to-MSME financing by enabling MSME buyers to access formal credit for procurement from MSME suppliers. S2S extends financing to Tier-2 and Tier-3 suppliers, those who sell to other MSMEs rather than directly to large corporates, effectively reaching the 'deep-tier' of the supply chain. To enable deep-tier financing with confidence, M1xchange uses CAE (Credit Analytics Engine), a comprehensive risk assessment tool that provides a dynamic view of borrower profiles, enabling faster and more informed credit decisions through automated risk and financial analysis.
By financing validated trade transactions instead of relying solely on collateral, the platform helps improve liquidity and strengthen supply chain continuity for smaller businesses.
M1xchange’s S2S platform recorded 556% year-on-year throughput growth, while the buyer base expanded 102%, reflecting rising MSME adoption. The platform also saw a 203% increase in throughput in April 2026 compared to April 2025.
The financier network on the platform has grown 50% to 21 lending partners, while repayment performance remains strong at 99.99%. M1xchange aims to double platform volumes by FY27 and cross Rs10,000 crore in throughput by FY30.
Sundeep Mohindru, Promoter & Director, M1xchange, explains: “Deep-tier financing represents the next phase of India’s MSME credit evolution, and the strong growth witnessed on the S2S platform reflects the increasing trust in alternative, data-led credit frameworks. The broader policy and regulatory focus on improving MSME financing, along with growing participation by financial institutions seeking to expand their credit reach, is further accelerating the adoption of formal financing channels across the MSME ecosystem. By enabling financing between MSME buyers and MSME sellers, we are extending the reach of TReDS, strengthening supply chain liquidity, and expanding formal credit access for businesses operating deeper within supply chains.”
A growing number of MSMEs are also leveraging the platform for both payables and receivables financing. Approximately 20% of S2S buyers have enabled both capabilities, helping them improve liquidity management and participate in larger, bulk procurement opportunities from corporates and enterprise buyers.
The platform’s growth reflects a broader movement within India’s trade finance ecosystem toward technology-driven credit inclusion, standardized risk assessment, and transparency.
