India’s Ministry of MSME has drawn a new line in the sand. By 31 March 2025, companies with annual revenues surpassing INR 250 crore must register on the Trade Receivables Discounting System (TReDS). This directive—announced on 7 November 2024 (CG-DL-E-07112024-258523)—is poised to revamp cash flow management and credit accessibility for Micro, Small, and Medium Enterprises (MSMEs).
For M1xchange, one of the country’s leading TReDS platforms, this regulatory push could be a turning point. With an RBI license and a track record of processing invoice discounting transactions worth over INR 1.4 lakh crore, the platform is primed for expansion. The adoption of digital financing methods is on the rise, and M1xchange’s ability to process payments within hours positions it as a critical player in this evolving landscape.
The Impact of This Mandate
By lowering the mandatory turnover threshold to INR 250 crore, the government aims to tackle liquidity bottlenecks for MSMEs. More than 7,000 corporates and 22 Central Public Sector Enterprises (CPSEs) are expected to onboard TReDS platforms as a result of this regulation.
The benefits of this mandate are faster payments, streamlined cash flow cycles, and reduced reliance on high-interest borrowing. MSMEs—often strapped for funds and plagued by delayed payments—could finally find some breathing room. And with digital platforms like M1xchange, inefficiencies in invoice processing might soon become a thing of the past.
Sundeep Mohindru, Promoter and Director of M1xchange, sees the directive as a vital step toward closing the credit gap. “This mandate doesn’t just promote compliance; it creates a foundation for sustainable growth,” he said. “M1xchange is ready to provide seamless, collateral-free financing solutions to both MSMEs and large corporates.”
M1xchange Advantage
M1xchange already has partnerships with over 65 banks, 2,200 corporates, and a sprawling network of more than 40,000 MSMEs. Its digital-first processes ensure payments can be cleared within 24 hours of invoice approval—a sharp contrast to traditional financing systems.
Recent upgrades like QR-code-enabled invoice uploads and integration with the Bharat Connect B2B Payment Platform signal the platform’s intent to stay ahead of the curve. Another major step has been the introduction of Small-to-Small (S2S) financing, enabling unsecured, low-cost funding for MSMEs, particularly in tier-2 and tier-3 cities.
The company’s approach doesn’t just address the needs of large players. By adopting deep-tier financing and deploying advanced credit evaluation systems, M1xchange creates pathways for smaller businesses to access liquidity without collateral. This, in turn, levels the playing field and fosters sustainable growth.
Delhi NCR: At the Center of Change
Delhi NCR—home to over 3,15,268 active companies—is likely to feel the ripples of this regulatory shift more than most. From automotive giants to infrastructure players, industries in the region stand to gain from M1xchange’s digital financing solutions.
Already present in over 2,200 cities, the company has ambitious plans to onboard 30,000 more MSMEs by FY 2024-25. Its role as a financing facilitator could make Delhi NCR a proving ground for the broader adoption of TReDS across India.
And it’s not just big corporates that stand to benefit. MSMEs scattered across the region could leverage M1xchange’s tools to stabilize cash flows and scale operations, positioning themselves for long-term growth.
Going Global with M1 NXT
M1xchange isn’t stopping at domestic markets. Its international factoring platform, M1 NXT, recently received the green light from the International Financial Services Centres Authority (IFSCA). Its goal is to simplify cross-border trade financing and provide exporters with quicker access to working capital.
For Indian MSMEs aiming to compete globally, this development couldn’t have come at a better time. M1 NXT not only reduces financing risks but also integrates advanced credit assessment tools to smoothen international transactions. It’s a step toward aligning India’s economic infrastructure with global standards.
The Road Ahead: Financial Evolution
As the March 2025 deadline approaches, the message is clear: companies need to act fast. Compliance isn’t just a legal requirement—it’s an opportunity to embrace more efficient, transparent financial systems.
M1xchange finds itself at the centre of this transition. Its focus on bridging liquidity gaps and driving financial inclusion mirrors the larger economic shifts reshaping India. For businesses navigating this evolving terrain, tools like TReDS aren’t just conveniences—they’re survival strategies.
From strengthening vendor relationships to ensuring regulatory compliance, M1xchange has built an ecosystem designed for growth. The next chapter in India’s financial evolution is here, and the businesses ready to adapt will be the ones leading the charge.
