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M1xchange, an RBI-licensed TReDS (Trade Receivables Discounting System) platform, recorded over Rs. 78,000 crore in throughput in FY25, marking 100% year-on-year growth and total invoice discounting surpassing Rs. 1.7 lakh crore. The platform saw a 150% surge in H2 FY25, growing from Rs. 32,000 crore in H1 to over Rs. 46,000 crore, and hit a record Rs. 10,000 crore in discounted invoices in March 2025 alone.
India’s MSME sector, facing a credit gap of Rs. 20–25 lakh crore, has only 20% access to formal financing. To bridge this gap, the government mandated TReDS registration for businesses with turnover above Rs. 250 crore—fueling adoption. M1xchange onboarded over 1,000 corporates and 20,000+ MSMEs in FY25, propelled by its innovative Small-to-Small (S2S) financing initiative that integrates tier 2 and 3 MSMEs into formal credit systems.
From Rs. 23,100 crore in FY23 to Rs. 43,000 crore in FY24, M1xchange has more than doubled throughput in two years. Strong government support and rising adoption by corporates and financial institutions have powered its growth. Partnerships with states like Andhra Pradesh, Maharashtra, and Tamil Nadu are further expanding MSME access to working capital.
The platform reduces financing costs for MSMEs by 5–8% and maintains low default rates, encouraging banks to extend credit even to BBB-rated corporates. Key sectors such as Infrastructure, Electronics, Automotive, Textiles, Energy, and Agriculture now contribute over 60% of throughput, reflecting M1xchange’s critical role in India’s supply chain financing ecosystem.
Promoter & Director of the platform, Sundeep Mohindru noted, “The government’s recognition of TReDS has played a crucial role in driving adoption. We’ve built a trusted ecosystem for MSMEs, corporates, and financial institutions to collaborate seamlessly.”
M1xchange aims to maintain its strong growth trajectory and deepen its impact on India’s MSME financing landscape with continued innovation and policy backing.
