Invoicemart, an electronic platform that allows auctioning of trade receivables, was bullish for a three-fold growth in value of trade receivables deals to Rs 8000-9000 crore in the current fiscal, a top company official said.
Promoted by A TREDS Ltd, a 67:33 joint venture between Axis Bank and mjunction Services Ltd, Invoicemart is one of the three Trade Receivable Discounting System (TReDS) platform that are in operation since 2017.
"We have garnered 40 per cent of the estimated market of Rs 700 crore per month of total trade receivable financing taking place now and growing exponentially," Invoicemart MD & CEO Kalyan Basu told PTI.
"On a cumulative basis, we have already executed bills factoring on our platform totalling close to Rs 3000 crore. From this, we are aiming at growing to Rs 8000-9000 crore by end of FY20," he said.
Receivables Exchange of India (RXIL) and M1Xchnage are its two peers with similar TReDS platform.
TReDS is an RBI approved system for operating the institutional mechanism for facilitating the financing of trade receivables of MSMEs from corporate buyers through multiple financiers on a transparent platform.
Invoicemart has 25 banks and NBFCs, 300 large corporates and some 2000 MSMEs on its platform, Basu said.
Explaining the growth drivers, he said two major aspects push onboarding of more MSMEs and corporates.
The government has made mandatory for all PSUs with more than Rs 500 crore turnover to be on TReDs and as financers are funding large corporates, the problem of credit rating hurdles in the MSMEs trade financing gets eliminated, Basu said.
In this process, MSMEs gets their bills discounted (factoring) at a much lower interest rate of under 9 per cent.
Had the transaction been taken offline with lots of delays and paperworks, the interest rate would have been 11-12 per cent, he said.
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