New Delhi, May 13 (KNN) Filter Capital, a growth-stage investment firm, announced on Monday that it has invested approximately USD 10 million in M1xchange, a trade receivables discounting system platform.

The investment was made through a secondary transaction, reflecting Filter Capital’s confidence in digital supply chain finance as a driver of financial access for India’s micro, small and medium-sized enterprises (MSMEs).

Founded by Sundeep Mohindru and Vivek Misra, M1xchange reports facilitating invoice financing of nearly Rs 10,000 crore monthly, providing MSMEs with expedited access to working capital while promoting adoption across corporates, vendors, and financial institutions.

India’s supply chain finance sector is experiencing rapid growth according to the platform, fuelled by MSMEs’ need for faster working capital access and ongoing digital transformation across industries.

With the Reserve Bank of India’s Trade Receivables Discounting System (TReDS) framework in place, digital platforms are increasingly becoming essential components of MSME financing.

“M1xchange has consistently demonstrated the ability to keep innovating, while delivering revenue growth coupled with financial discipline. They have built a scalable, three-sided exchange with network effects and a clear win-win proposition for all stakeholders,” said Zareer Shroff, Principal, Filter Capital.

Nitin Nayar, Co-founder and Managing Director, Filter Capital, added, “India has over 60 million MSMEs that contribute nearly 30 per cent to the country’s GDP, yet this segment remains severely underserved when it comes to access to formal credit.”

According to the statement, M1xchange has facilitated over Rs 1.75 lakh crore (USD 20 billion) in invoice discounting to date.

(KNN Bureau)