Invoice discounting platform M1xchange on Friday said it has partnered with the Gujarat government for collateral-free working capital access to Gujarat-based MSMEs supplying to state government departments, PSUs, and private enterprises. Under the MoU signed, M1xchange and the state government will enable early payment for MSMEs working for government departments and PSUs and private companies in Gujarat at competitive prices.
M1xchange is one of the invoice discounting platforms recognised by the Reserve Bank of India (RBI) on its TReDS platform.
Speaking on the tie-up, Amit Sachdev, Co-founder & COO, M1xchange said the partnership will play a big role in addressing credit gaps faced by the MSME sector, giving them an opportunity to easily avail of receivable financing through TReDS.
“Our joint efforts aim to ensure that MSMEs receive timely payments, thereby improving their cash flow and fostering growth.”
Gujarat currently has a share of 8 per cent in India’s GDP and is home to over 23.72 lakh MSMEs registered on the Udyam platform.
“MSMEs form the backbone of Gujarat’s economy, employing over 1 crore people and contributing significantly to the state’s industrial growth. With Gujarat accounting for nearly 8% of India’s GDP, it is imperative that we strengthen the financial ecosystem supporting our MSMEs. This partnership marks a significant step in enhancing access to formal credit for MSMEs working with Government of Gujarat and within the state by leveraging digital invoice discounting mechanisms through TReDS platforms,” said Sandip Sagale, IAS, Commissioner of MSMEs, Government of Gujarat.
So far M1xchange has facilitated over Rs 1.75 lakh crore of invoice discounting. The platform said it has witnessed a 100 per cent year-on-year growth and has a base of over 50,000 MSMEs and over 2800 corporates with more than 66 banks and NBFCs.
The company already has MoUs with other states viz., Maharashtra, Haryana, Goa, Madhya Pradesh, and Tamil Nadu, to enhance liquidity for MSMEs in these states.
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