Mumbai-based TReDS platform M1xchange has raised an undisclosed amount of funding in series A round from Mayfield India and SIDBI Ventures. The Trade Receivables Discounting System (TReDS) startup will use the freshly raised capital to invest in the blockchain, enhance its network and improve business growth strategies.
As a part of the deal, Vikram Godse, Managing Partner of Mayfield will join the board of directors of M1xchange. Maple Capital Advisors, an investment bank based in Delhi, acted as the financial advisor to M1xchange for the funding round.
M1xchange is an online exchange set up under the approval of Reserve Bank of India (RBI). It facilitates discounting of invoices and bills of exchange all across India. The apt platform for trade receivables of MSME provided by the factoring exchanges enables cash realisation at a future date.
The startup has tied up with 25 banks and 100 large corporate customers. Since its inception, it has facilitated over INR 1,800 crores of factoring for the vendors. M1xchange launched a blockchain-based networking platform in April 2018 to prevent financial frauds and double invoicing issues.
“The volume growth on M1xchange in past 12 months reflects its successful adoption by all the participants – MSME vendors, large corporates and banks,” said Sundeep Mohindru, CEO of M1xchange.
The government of India has introduced multiple initiatives for these exchanges. Public Sector Undertakings (PSUs) will join TReDS and the Ministry of Finance has categorised advances under TReDS as Priority Sector Lending for all banks. The Prime Minister also announced that all corporates with turnover more than INR 500 crores must register on TReDS.