M1xchange has raised $10 million in its current funding round, which was led by Amazon, and had participation from BEENEXT and existing investor Mayfield.
M1xchange is the leader amongst the holders of the three Trade Receivables Discounting System (TReDS) licenses issued by RBI, in terms of cumulative value of invoices discounted. Since the launch of the exchange, a little over 3 years ago, M1xchange has discounted invoices totaling US$ 1.7 billion across 10,000 MSME suppliers. These suppliers access the website from 352 cities digitally to finance their receivables and enjoy a rate of interest that is 6%-10% per annum; which is lower than the bilateral funding rate available outside M1xchange.
M1xchange brings down the cost of borrowing for all participants, thereby making MSMEs more competitive. The digital process enables seamless presentation of bills, their validation, discounting, and disbursement of funds in an average TAT of 2 days. Amongst options available, M1xchange allows the shortest time for MSMEs to receive funding.
M1xchange is the only TReDS exchange wherein the assignment of receivables under Factoring, is done digitally for every transaction, in favour of the financing bank. The internal risk and repayment scoring algorithm of M1xchange has mitigated risk of fraudulent bills with zero exceptions in past 3 years. Another USP of M1xchange is that it is a bank agnostic exchange with 36 banks on-board.
M1xchange’s team is continuously enhancing user experience and has lately announced the launch of its mobile app. Amongst the various unique features offered is the usage of Aadhaar Based e-sign to enable quick Authorization/Acceptance of invoices and bids on mobile app.
The numbers of corporates that are approving invoices on M1xchange are by far the largest amongst all exchanges, thereby giving an opportunity to MSMEs to discount invoices of multiple buyers. During this pandemic time, M1xchange took steps to further enable social distancing and implemented Digital On-boarding of MSMEs on the website. This paperless and digital onboarding enables them to complete their digital onboarding journey within 15 minutes, without usage of courier for delivery of documents. Maple Capital Advisors from Delhi has helped M1xchange in this round of investment.