M1xchange Achieves Rs 32,000 Cr Throughput In H1 FY25

M1xchange, India's leading invoice discounting platform, reported an impressive Rs 32,000 crore throughput for the first half of FY25, marking a 100 per cent year-on-year growth. This achievement highlights the platform's pivotal role in reshaping alternative financing for MSMEs, addressing a critical credit gap of Rs 20-25 lakh crore identified by Crisil.

The platform's Small-to-Small (S2S) financing initiative has brought tier 2 and tier 3 MSMEs into the formal credit system. By enabling competitive early payments through TReDS (Trade Receivables Discounting System), M1xchange has become an essential player in the MSME ecosystem. "The growing recognition of our platform by MSMEs, corporates, and the government reinforces the value we bring in bridging the financing gap,” said Sundeep Mohindru, Promoter and Director, M1xchange.

The platform on boarded over 200 corporates and 10,000 MSMEs in H1 FY25 alone. It discounted invoices worth Rs 43,000 crore in FY24, up from Rs 23,100 crore in FY23. Offering a risk-mitigated framework and a reduction of financing costs by 5-8 per cent, M1xchange has encouraged broader adoption, including from BBB-rated corporates, further bolstering MSME growth.

Key industries such as infrastructure, auto, textiles, and energy account for over 60 per cent of M1xchange’s throughput. Partnerships with state governments in Andhra Pradesh, Maharashtra, Haryana, and Tamil Nadu have expanded its impact, providing liquidity and timely payments to MSMEs across the nation.

Regulatory reforms, including lowering the turnover threshold for mandatory TReDS onboarding to Rs 250 crore and increasing priority sector lending targets to Rs 27.5 lakh crore for FY25, have significantly enhanced traction on the platform. M1xchange continues to be a transformative force, enabling MSMEs to thrive in a rapidly evolving economy.