M1xchange crosses ₹1 lakh crore in transactions as more MSMEs use invoice discounting

M1xchange, an RBI-licensed Trade Receivables Discounting System (TReDS) platform, said it crossed ₹1 lakh crore in transaction throughput in the first 10 months of FY2025–26, becoming the first TReDS platform to reach this level within a single financial year.

The company said the milestone was achieved in early February, with nearly two months left in the financial year. The increase reflects rising use of digital invoice discounting by MSMEs and their corporate buyers.

According to M1xchange, over 70,000 MSMEs across more than 2,500 locations are using the platform to discount invoices and receive early payments from lenders. Financing on the platform involves more than 70 banks and non-banking finance companies (NBFCs) and over 5,000 corporate buyers.

Sectors contributing to transactions include infrastructure, manufacturing, automotive and ancillaries, electricals and electronics, textiles, energy, and public sector undertakings.

Since its launch, M1xchange said it has facilitated cumulative invoice discounting of more than ₹2.65 lakh crore.

M1xchange promoter and director Sundeep Mohindru said the milestone showed growing acceptance of digital trade finance among MSMEs, corporates, and financiers.

The company pointed to recent Union Budget proposals — including credit guarantees for invoice discounting and integration of the government’s e-marketplace (GeM) with TReDS — as measures that could expand participation in receivables financing.

M1xchange also runs a Small-to-Small (S2S) financing model that allows smaller suppliers to discount invoices raised on other MSMEs.

The company expects invoice discounting volumes to rise further as more corporates and lenders participate on TReDS platforms.