Andhra Pradesh Govt, M1xchange Collaborate To Boost MSME Financial Access Via TReDS

M1xchange, a trade receivable discounting system (TReDS) platform, signed a memorandum of understanding (MoU) with the Government of Andhra Pradesh on 27 June 2024 to enhance the financial health of MSMEs through digital solutions, aiming to drive their growth in the region.

The partnership aimed to enhance financial access for local MSMEs, facilitating their growth and sustainability. Through TReDS, MSMEs get access to collateral-free, without recourse working capital against invoices within 24 hours at the lowest rate through its online bidding platform.

They reported that Andhra Pradesh has over 8.65 lakh MSMEs registered on the Udyam platform. This led to an extensive awareness program conducted across various industrial clusters in the state, jointly by the Government of Andhra Pradesh and M1xchange on the occasion of the collaboration, to increase registrations on the M1xchange platform while offering them a robust solution for easy access to working capital.

“This MoU is a pivotal step towards empowering the MSME sector in Andhra Pradesh by streamlining access to working capital through TReDS. Our joint efforts aim to ensure that MSMEs receive timely payments, improving their cash flow and fostering growth. Together, we are committed to reforming the financial landscape for MSMEs in Andhra Pradesh,” Sundeep Mohindru, Promoter and Director, M1xchange said.

In a press statement, M1xchange stated that they facilitated Rs 1,00,000 crore worth of invoice discounting amounting to over 2.5 million invoices. The company is eyeing Rs 72,000 crore in throughput value by March 2025, higher than Rs 43,300 crore in FY24.