In a major secondary deal indicating growing investor interest in India’s digital supply chain finance space, Amazon-backed TreDS platform M1xchange raised USD 10 million (~INR 84 crore) from Filter Capital. It is a growth-stage investment firm. M1xchange-Filter Capital deal highlights the growing importance of digital Trade Receivables Discounting System (TReDS) platforms in addressing the long-standing credit gap faced by micro, small and medium enterprises (MSMEs) in India.
Founded in 2017 by Sundeep Mohindru and Vivek Misra, M1xchange is a Gurugram-based company that operates under the Reserve Bank of India’s TReDS framework—a regulatory initiative to democratise access to working capital for MSMEs through transparent invoice discounting mechanisms. The platform allows small vendors to auction their receivables to multiple financiers including banks and NBFCs, increasing liquidity and speeding up cash flow.
A Growing Market and Strategic Investment
The USD 10 million investment by Filter Capital was made via a secondary transaction, a structure often used to allow early investors or employees to partially exit while enabling newer investors to participate. The deal comes just two months after Jindal Stainless and its subsidiary Jindal Stainless Steelway acquired a 9.62% stake in M1xchange, adding further strategic heft to the platform’s cap table.
“M1xchange has consistently combined innovation with financial discipline,” said Zareer Shroff, Principal at Filter Capital. “They’ve built a scalable, three-sided exchange with strong network effects and a clear win-win for MSMEs, corporates, and financial institutions.”
Stellar Growth Trajectory
The company’s operational metrics showcase the power of its model. As of May 2025, the platform:
- Facilitates invoice financing of INR 10,000 crore (USD 1.2 billion) monthly,
- Has onboarded over 50,000 MSMEs, 2,800 corporates, and 66 financial institutions,
- Has facilitated over INR 1.75 lakh crore (USD 20 billion) in cumulative invoice discounting.
In FY24, the company reported:
- A 91% surge in operating revenue to INR 56.47 crore (from INR 29.52 crore in FY23),
- A near 50% reduction in net losses to INR 3.98 crore.
Addressing India’s MSME Credit Challenge
India is home to over 60 million MSMEs, contributing nearly 30% of the national GDP, yet access to formal credit remains starkly limited. Traditional banking systems often shy away from lending to small businesses due to lack of collateral or consistent cash flows. Platforms like M1xchange are attempting to bridge this chasm using fintech innovations aligned with government frameworks like TReDS.
“The future of credit for small businesses lies in digital solutions that are fast, scalable, and trustworthy,” said Nitin Nayar, Co-founder and Managing Partner at Filter Capital. “M1xchange addresses this need head-on.”
Robust Backing and a Vision for Scale
The company’s cap table already includes marquee investors such as:
- Amazon,
- IndiaMART,
- SIDBI Venture Capital,
- BEENEXT,
- Mayfield.
To date, M1xchange has raised over USD 47 million (~INR 400 crore) in both primary and secondary rounds. The latest capital infusion strengthens its position against other TReDS players like RXIL, Invoicemart, KredX, and C2treds.
The broader ecosystem also sees regulatory tailwinds. The Finance Ministry has increasingly prioritized MSME lending, and with the Reserve Bank of India emphasizing digital financial infrastructure, platforms like M1xchange are likely to play a pivotal role in India’s USD 500 billion (~INR 42.47 lakh crore) trade finance opportunity.
A Broader Fintech Investment Trend
For Filter, this deal is part of its broader thesis. The firm closed its first fund—Filter Capital India Fund I—in 2024 with INR 800 crore (~USD 100 million), and has already invested in high-growth, tech-driven businesses such as Capillary Technologies, Chalo Mobility, LoadShare Networks, and THB.
This latest move into M1xchange reaffirms the rising appetite among venture and growth capital investors for asset-light, network-based fintech models solving large-scale credit and liquidity bottlenecks.
Bottom Line
M1xchange’s latest funding round is more than just a capital raise—it’s a validation of the digital TReDS ecosystem and a clear indicator that MSME credit enablement is a booming frontier in India’s fintech landscape. As the platform scales, it stands to become a critical enabler of financial inclusion, GDP contribution, and digital adoption for India’s sprawling base of small businesses.
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