M1Xchange Trade Receivables Discounting System (TReDS) platform has forayed into the aviation sector by bringing on board Airport Authority of India (AAI), Air India and Air India Express.
The concept of TReDS, which was introduced by the RBI in 2014, helps small companies get their bills discounted at a competitive rate through an auction where multiple registered financiers can participate.
The recent permission granted to non-banking financial system (NBFCs) to access the benefits of TReDS platform will add to the number of financiers while large public sector undertakings from different sectors joining in will encourage cash strapped MSMEs to increasingly seek the benefits from the digital platform.
The volume growth on M1xchange since its inception across sectors reflects its successful adoption by all the participants — MSME vendors, large corporates and banks. M1xchange team is happy to foray in aviation sector and join hands with the aviation sector’s 3 giants to expand further the digital payment eco system in India and support the growth of MSME businesses across the country.” said Sundeep Mohindru, CEO of M1xchange.
The Reserve Bank of India granted approval to Mynd Solutions Pvt Limited to set up and operate M1xchange, the first trade receivable exchange in India. M1xchange has digitally transformed the process of gaining acce-ss to working capital for MSMEs via invoice discounting through multiple financiers.