Gandhinagar, May 3 (KNN) M1xchange, an invoice discounting platform, announced a strategic partnership with the Gujarat government on Friday to provide collateral-free working capital access to MSMEs based in Gujarat.
The partnership will benefit small businesses supplying to state government departments, public sector undertakings (PSUs), and private enterprises.
Under the memorandum of understanding (MoU), M1xchange and the Gujarat government will collaborate to enable early payment solutions for MSMEs at competitive rates.
This initiative aims to address the persistent challenge of delayed payments that often constraints MSME growth and operations.
M1xchange operates as one of the Trade Receivables Discounting System (TReDS) platforms recognized by the Reserve Bank of India (RBI).
The platform facilitates the financing of trade receivables of MSMEs from corporate buyers through multiple financiers.
Amit Sachdev, Co-founder and COO, M1xchange, emphasized that this partnership will help address credit gaps in the MSME sector.
“Our joint efforts aim to ensure that MSMEs receive timely payments, thereby improving their cash flow and fostering growth,” he stated.
To date, M1xchange has facilitated over Rs 1.75 lakh crore of invoice discounting and reports a 100 percent year-on-year growth.
The platform serves more than 50,000 MSMEs and 2,800 corporate clients, with participation from over 66 banks and NBFCs.
This partnership expands M1xchange’s governmental collaborations, adding to existing MoUs with Maharashtra, Haryana, Goa, Madhya Pradesh, and Tamil Nadu, all aimed at enhancing liquidity for the MSME sector across India.
(KNN Bureau)
