TReDS platform M1xchange raises $10 million from Filter Capital

M1xchange, a Reserve Bank of India–licensed Trade Receivables Discounting System (TReDS) platform, has secured Rs 84 crore (about $10 million) from growth‑stage investor Filter Capital in a secondary transaction. The deal underscores rising investor confidence in digital supply‑chain finance as a lifeline for India’s credit‑starved micro, small and medium enterprises (MSMEs).

The investment comes less than two months after Jindal Stainless and subsidiary Jindal Stainless Steelway picked up a 9.62% stake in the Gurugram‑based fintech firm. With this round, M1xchange has raised about $45 million in primary capital from backers such as SIDBI Venture, Amazon, IndiaMART, BEENEXT and Mayfield.

What does M1xchange do?

Founded in 2017 by Sundeep Mohindru and Vivek Misra, M1xchange runs an RBI‑regulated marketplace that lets MSME vendors auction invoices to banks and NBFCs. The platform now processes roughly Rs 10,000 crore (around $1.2 billion) in invoice financing each month and has facilitated over Rs 1.75 lakh crore (nearly $20 billion) in total since launch.

"This marks an important milestone in M1xchange’s journey of innovation, technology‑led growth and financial inclusion," Mohindru, the chief executive, said.

"Filter Capital shares our long-term vision and deep understanding of scaling technology-first businesses. Their investment reinforces our commitment to building a transparent and comprehensive supply chain finance ecosystem for MSMEs and enterprises in India."

Market presence

The exchange today serves more than 50,000 MSMEs, 2,800 corporates and 66 financial institutions, and reported a 100% year‑on‑year jump in transaction volumes. In FY24, operating revenue surged 91% to Rs 56.47 crore while net loss narrowed to Rs 3.98 crore.

"India has over 60 million MSMEs contributing nearly 30% to GDP, but access to formal credit remains limited,” said Nitin Nayar, Co-founder and Managing Partner at Filter Capital. "M1xchange has built a platform that uniquely addresses this credit gap, and we believe the team is well-positioned to drive scalable impact."

Zareer Shroff, Principal at Filter Capital, added: “M1xchange has consistently combined innovation with financial discipline. They have built a scalable three-sided exchange with strong network effects and a clear win-win for all ecosystem players."

Filter Capital—whose portfolio spans fintech, SaaS and logistics—closed its maiden Rs 800 crore fund in April 2024.