M1xchange, India’s first and only RBI-licensed Trade Receivables Discounting System (TReDS) platform, has clocked a remarkable INR 78,000 crore in FY25, a 100% year-on-year (YoY) growth. The platform saw a 150% surge in throughput in H2 FY25, from INR 32,000 crore in H1 to over INR 46,000 crore in H2.
This performance solidifies M1xchange’s position as a leader in invoice discounting and MSME financing. The growth is a testament to the platform’s increasing relevance in the Indian financial ecosystem, government support, corporate and institutional adoption and innovative fintech solutions for underserved business segments.
March is a Milestone Month
M1xchange ended the year with a new high in March 2025, discounting invoices worth INR 10,000 crore in a single month—a first in India’s TReDS space. This monthly high reflects the platform’s growing confidence, operational efficiency and liquidity flow between MSMEs, large corporates and financial institutions.
In FY25, M1xchange added over 1,000 corporates, with 800 of them joining in H2 alone. The platform onboarded more than 20,000 MSMEs, expanding its network and mission to democratize formal credit.
A key enabler of this outreach has been the Small-to-Small (S2S) Financing Initiative which enables tier 2 and tier 3 MSMEs to access early payments from each other at competitive rates—outside the traditional buyer-seller hierarchy. This has led to formal credit adoption across India’s industrial heartland.
Investor Confidence
M1xchange is backed by Jindal Stainless (JSL) and Amazon, two giants from the manufacturing and tech sectors respectively. Their involvement is a testament to the broader institutional belief in the scalability and sustainability of digital invoice discounting in India.
Policy Winds and Regulatory Mandates
Much of M1xchange’s growth is driven by strong policy tailwinds. The Government of India has recognized the importance of TReDS in bridging the estimated INR 20–25 lakh crore MSME credit gap and has made TReDS registration mandatory for all businesses with annual turnover above INR 250 crore.
Adding to this policy push is the mandate that 25% of procurement by central ministries, CPSEs and government departments must come from micro and small enterprises (MSEs). M1xchange’s active partnerships with state governments—Andhra Pradesh, Maharashtra, Haryana, Goa, Madhya Pradesh and Tamil Nadu—are helping local MSMEs access this mandate by unlocking working capital through digital discounting.
Cost Savings and Credit Risk Framework
M1xchange offers tangible benefits. By using the platform, MSMEs get 5-8% reduction in financing costs, which means huge operational savings. The risk mitigated framework with minimal defaults has encouraged lenders to lend to BBB rated corporates, increasing financing availability and sectoral liquidity.
M1xchange growth is in line with overall economic trends. Key sectors like Infrastructure, Electricals/Electronics, Automotive & Ancillaries, Textiles, Energy and Agriculture together contribute to over 60% of the total throughput, which shows how the platform is supporting India’s core industries and agriculture.
About M1xchange
Founded to bridge the credit gap for Indian MSMEs, M1xchange is one of the three licensed TReDS platforms in India. With a unique value proposition of technology, credit risk mitigation and deep ecosystem integration, it is leading India’s invoice discounting revolution.
Leadership Perspective
Sundeep Mohindru, Promoter & Director of M1xchange, said: “We are thrilled to have achieved this kind of growth in such a short time. Government recognition of TReDS has played a big role in adoption. With INR 78,000 crore in invoice discounting and INR 10,000 crore in a month, we are proud of the impact we are creating. We will continue to expand financial access and reduce financing costs for MSMEs across the board.”
Looking Ahead
With policy support, investor backing, scalable technology and inclusive financing model, M1xchange is well placed to shape the future of MSME financing in India. As the country is aiming for USD 10 trillion (~INR 853 lakh crore) economy, platforms like M1xchange will be essential to address liquidity challenges, increase credit penetration and drive bottom up growth.
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