A key component of this collaboration is the launch of an extensive awareness program, conducted jointly by the Government of Andhra Pradesh and M1xchange.
M1xchange, India’s leading trade receivable discounting system (TReDS) platform, has signed a memorandum of understanding (MoU) with the Government of Andhra Pradesh on 27th June 2024 in the presence of Sri. Kondapalli Srinivas Hon’ble Minister for MSME,SERP, NRI Empowerment & Relations and Sri. N. Yuvaraj, IAS, Principal Secretary to Government (Mines), Industries & Commerce. This is in line with the state government’s acknowledgement of the MSME sector’s contribution to the GDP. This collaboration between M1xchange and the state government will enhance the financial health of MSMEs through digital solutions, aiming to drive their growth in the region.
Andhra Pradesh is amongst the fastest growing state in India with over 8.65 lakh MSMEs registered on the Udyam platform. The partnership envisions targeted initiatives to enhance financial access for local MSMEs, facilitating their growth and sustainability. Through TReDS, MSMEs get access to collateral free, without recourse working capital against invoices within 24 hours at the lowest rate through its online bidding platform.
A key component of this collaboration is the launch of an extensive awareness program, conducted jointly by the Government of Andhra Pradesh and M1xchange, across various industrial clusters in the state. The program aims to educate and encourage MSMEs to register on the M1xchange platform, offering them a robust solution for easy access to working capital.
Sundeep Mohindru, Promoter & Director, M1xchange said, “We are extremely grateful to have this opportunity to collaborate with the Government of Andhra Pradesh on this momentous occasion of MSME Day. This MoU is a pivotal step towards empowering the MSME sector in Andhra Pradesh by streamlining access to working capital through TReDS. Our joint efforts aim to ensure that MSMEs receive timely payments, thereby improving their cash flow and fostering growth. Together, we are committed to reform the financial landscape for MSMEs in Andhra Pradesh.”
As of date, M1xchange has facilitated INR 1,00,000 crores worth of invoice discounting. This amounts to over 2.5 million invoices. The company is eyeing INR 72,000 crore in throughput value (total value of invoices processed) by March 2025, higher than INR 43,300 crore in FY24.
The company has recently expanded the scope of TReDS with, ‘M1xchange Small-Small,’ a streamlined approach to cash-flow-based financing for small MSME sellers on TReDS. Tested in RBI’s Third Cohort under the Regulatory Sandbox (RS), this enables invoice financing for transactions between small enterprises, including SME buyers and SME sellers.
Additionally, M1xchange has also signed up MOUs with multiple state governments including Maharashtra, Haryana, Goa, Madhya Pradesh and Tamil Nadu to offer liquidity to the state’s MSMEs while ensuring timely payments at a competitive rate. The success of M1xchange is driven by an in-house technology platform that is available across the web and mobile. The entire process of customer onboarding, factoring, settlement etc. is digital and enables a world-class experience for each participant.