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Elets News Network > 2018-03-23

Standard Chartered and Godrej Agrovet completes its first TReDS transaction with M1xchange

In an endeavor to support MSME financing, Standard Chartered Bank has successfully completed its first Trade Receivable Discounting System (TReDS) digital factoring transaction on M1xchange. The Bank purchased the digital factoring unit of MSME supplier of Godrej Agrovet Ltd. TReDS is a digital platform set up by Reserve Bank of India (RBI) to help MSMEs get their trade receivables financed at a competitive rate through an auction mechanism.This can be done through M1xchange, (a TReDS platform set up by Mynd Solutions Pvt Ltd).

Standard Chartered Bank has successfully carved out its processes for taking a limit on corporate client and online discounting their vendor invoices. The entire flow from hosting the invoice by the vendor (MSME) on M1xchange platform, its acceptance by the Godrej Agrovet Ltd (Buyer), bidding and financing by the Bank was completed smoothly within minutes.

“This is indeed a path breaking initiative from RBI towards providing efficient working capital financing for MSME suppliers. This platform holds huge potential for making supply chain financing more competitive and digital in India. Credit also goes to M1xchange for launching this online platform successfully and integrating the process with Standard Chartered Bank. We are very excited to be part of this journey and proud to finance working capital for MSME’s at market determined competitive interest rates. We are confident that such platforms will go a long way in unleashing India’s digital potential,” said Sanjay Gurjar, Managing Director and Head, Transaction Banking (India and Nepal), Standard Chartered Bank.

Commenting on the initiative, Sundeep Mohindru, Founder-Director, and CEO, M1xchange, said, “It is a proud moment for all of us at M1xchange to have Standard Chartered as a financier on the platform. The rigorous efforts of teams from both sides have led to the achievement of this milestone. I would like to congratulate both teams for setting up this seamless process and speed of the teams for adaption to technological change.”

“The process of vendor bill discounting on online trade receivable M1xchange is pathbreaking. The end to end transaction from hosting the vendor invoice, it’s approval and financing by Standard Chartered Bank is digital. Our vendors are also delighted with the faster realisation of their payments through this TReDS platform,” said S Varadaraj, Head – Finance, Systems and Legal at Godrej Agrovet Ltd.