Invoice discounting company M1xchange has hit total transaction volume or throughput of over 32,000 crore in the first half of the current fiscal, growing by 100 per cent from the corresponding period in FY24, the company said on Monday. Among the RBI-licensed operators of the invoice discounting system TReDS, M1xchange said it onboarded over 200 new corporates and 10,000 MSMEs on its platform during H1 FY25.
Infrastructure, electricals/electronics, auto & ancillaries, textiles, energy, and agro industries account for over 60 per cent of M1xchange’s total throughput.
The company earlier this year had said that it discounted invoices worth Rs 43,000 crore in FY24, up by 86 per cent from Rs 23,100 crore in FY23.
Speaking on the growth, Sundeep Mohindru, Promoter & Director, M1xchange, said, “The increasing acceptance and recognition by the government of our platform highlights the value we are creating for both MSMEs, corporates and Financers along with supportive government initiatives, has propelled us to these new heights.”
The cost of financing on M1xchange has also become a key selling point for businesses, the company said. “By reducing financing costs by 5-8 per cent, MSMEs have been able to lower their business expenses, and these savings are passed on to corporate customers. Additionally, the platform’s risk-mitigated framework, which has minimal defaults, has encouraged banks to offer financing to BBB-rated corporates, enabling broader access for MSMEs.”
According to the government data, TReDS had financed a total of 41.6 lakh invoices involving Rs 1.38 lakh crore during FY24 across all four operators – M1xchange, RXIL, Invoicemart, and C2treds. The number of invoices financed across four platforms in FY24 jumped 62 per cent from the previous year while the amount involved was up by 80 per cent. In FY23, aggregate financing of 25.6 lakh invoices involving Rs 76,638 crore was reported.
Moreover, to boost liquidity among MSMEs, the government earlier this month had reduced the turnover criterion for businesses to list on TReDS from Rs 500 crore earlier to Rs 250 crore, following the budget announcement by Finance Minister Nirmala Sitharaman.
Sitharaman had said that the revised threshold would allow 22 more central public sector enterprises (CPSEs) and 7,000 more companies to get on TReDS.