Filter Capital invests $10 mn in trade discounting platform M1xchange

Growth-stage investment firm Filter Capital on Monday said it has invested approximately USD 10 million (Rs 85 crore) in trade receivables discounting system platform M1xchange.

This investment, made through a secondary transaction, highlights Filter Capital's belief in the potential of digital supply chain finance in driving financial access for India's micro, small and medium-sized businesses, it said in a statement.

M1xchange, set up by Sundeep Mohindru and Vivek Misra, claims to facilitate invoice financing of nearly Rs 10,000 crore each month, enabling MSMEs with faster access to working capital and driving adoption across corporates, vendors, and financial institutions.

According to the platform, India's supply chain finance sector is witnessing accelerated growth, driven by the need for faster-working capital access for MSMEs and digital transformation across industries.

 

With the RBI's TReDS framework, digital platforms are increasingly becoming the backbone of MSME financing, it said.

"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 at Filter Capital.

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

To date, M1xchange has facilitated over Rs 1.75 lakh crore, or USD 20 billion, of invoice discounting, as per the statement.