In a big boost to Gujarat’s vibrant MSME sector, M1xchange has partnered with the Government of Gujarat to provide collateral-free working capital solutions to micro, small and medium enterprises (MSMEs) in the state.
The partnership was formalized through a MoU signed in Gandhinagar and will benefit MSMEs supplying goods and services to state government departments, PSUs and private enterprises. Under this agreement, MSMEs will get early payments at competitive rates by using digital invoice discounting mechanism through the Trade Receivables Discounting System (TReDS) platform.
MSME Credit Gaps
M1xchange is RBI recognized and one of the three TReDS platforms in India to facilitate financing of trade receivables from large buyers through a network of over 66 banks and NBFCs. Through this partnership, MSMEs in Gujarat can get receivable financing without collateral, one of the biggest challenges in MSME operations – delayed payments and restricted liquidity.
“This is a big step in addressing the credit gaps in MSME sector,” said Amit Sachdev, Co-founder and Chief Operating Officer, M1xchange. “Our joint effort will ensure that MSMEs get timely payments and improve their cash flow and growth. We are happy to partner with Government of Gujarat to empower MSMEs across the state.”
Government’s Commitment to Industrial Growth
Gujarat contributes to 8% of India’s GDP and has over 23.72 lakh MSMEs, as per Udyam portal. These enterprises employ over 1 crore people and are the backbone of Gujarat’s industrial and economic growth. The state government has also mandated that 25% of its annual procurement be sourced from micro and small enterprises, which is a commitment to inclusive industrial development.
Speaking on the occasion Shri Sandip Sagale, IAS, Commissioner of MSMEs, Government of Gujarat said: “Gujarat is a big contributor to India’s economic engine, so it’s essential to strengthen the financial ecosystem for our MSMEs. This will ensure timely payments, improved cash flow and reduced dependence on informal credit channels. It will ensure business continuity, sustainability and long term growth for our entrepreneurs.”
The MoU was supported by Shri R.D. Barhatt, Joint Commissioner of Industries (MSME–D) and facilitated by SIDBI-KPMG’s Project Management Unit (PMU) led by Mr. Neeraj Sharma and Mr. Ayush Goel.
Financial Inclusion
M1xchange along with its subsidiaries Mynd Fintech and M1 NXT will lead the implementation in Gujarat, which includes launching an awareness campaign across key industrial clusters. The objective is to onboard eligible MSMEs and educate them about digital invoice discounting.
So far M1xchange has facilitated invoice discounting transactions of over INR 1.75 lakh crore, serving over 50,000 MSMEs and 2,800 corporates. The platform has seen 100% year on year growth and has already partnered with state governments in Maharashtra, Haryana, Goa, Madhya Pradesh and Tamil Nadu.
Road Ahead
As M1xchange partners with Gujarat Government the innovation and inclusive growth is onboard. M1xchange and Gujarat Government partnership is a forward thinking approach to MSME financing. By combining the reach of government with the efficiency of digital platforms like M1xchange, Gujarat’s MSMEs will get faster access to liquidity—essential for scaling up, employment generation and contribute to the state’s growth. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.