In a move to strengthen its digital supply chain financing capabilities, Jindal Stainless, India’s largest stainless steel manufacturer, has acquired a 9.62% stake in M1xchange, a RBI-licensed Trade Receivables Discounting System (TReDS) platform. The investment of around INR 154 crore (~USD 18 million) is a mix of primary capital infusion and secondary share purchase from existing shareholders.
The investment was made jointly by Jindal Stainless and its wholly-owned subsidiary, Jindal Stainless Steelway (JSSL). As per the disclosures, the company picked up a 5.03% stake for INR 102.7 crore (~USD 12 million) and the remaining stake was bought by JSSL.
M1xchange
Founded in 2017 and based in Gurugram, M1xchange is a digital marketplace that enables invoice discounting and supply chain financing. The platform connects MSMEs, corporates, banks and NBFCs, where vendors can auction their invoices and get early access to working capital. This has improved liquidity and reduced the payment cycle for small businesses.
M1xchange offers:
- TReDS (Trade Receivables Discounting System) for the domestic market
- ITFS (International Trade Finance System) via GIFT City for global transactions
- Channel Finance solutions through its subsidiary, Mynd Fintech
The platform is backed by investors like Amazon, SIDBI Venture, IndiaMART, BEENEXT, and Mayfield and has raised over USD 19 million (~INR 162.63 crore) to date. SIDBI and Amazon hold 11.85% and 9.75% stake, respectively.
Growing Stronger
With 65+ partner banks, 2,000+ corporates, and 48,000+ MSMEs on board, M1xchange has facilitated invoice discounting transactions of over INR 1.6 lakh crore. In FY24, the company posted INR 56.47 crore operating revenue, up 91% from INR 29.52 crore in FY23. It also managed to halve its net loss to INR 3.98 crore. M1xchange
Jindal Stainless Synergies
Jindal Stainless, with INR 38,562 crore (~USD 4.7 billion) turnover in FY24, has 16 manufacturing and processing facilities in India and abroad in 12 countries, including Spain and Indonesia. The company is targeting 4.2 million tonnes of annual melt capacity by FY27.
The investment is a key enabler in Jindal Stainless’ digital transformation to reduce working capital cycle, simplify payment processes and support domestic and international channel partners.
Abhyuday Jindal, MD Jindal Stainless said:
“This will have a two-pronged benefit – it will empower our value chain across upstream and downstream channels and provide liquidity to further strengthen our balance sheet.”
Anurag Mantri, ED & CFO, Jindal Stainless, added:
“Scale of Jindal Stainless combined with digital financing solutions at M1xchange will disrupt traditional financing practices and provide cheaper and faster credit to our global value chain.”
Advisors and Legal
The transaction was advised by Deloitte India as the exclusive financial advisor to Jindal Stainless. Legal counsel was provided by Dentons Link Legal and Stratage Law Partners for Jindal Stainless and Mynd Solutions, respectively.
Conclusion
This is a growing trend among industrial majors to invest in fintech to become more agile, transparent and operationally efficient in their financial ecosystem. Jindal Stainless’ investment in M1xchange not only strengthens its balance sheet but also signals a broader shift towards digital supply chain management and MSME empowerment through affordable, tech-enabled credit.