M1xchange promoted by Mynd Solutions Pvt Ltd partners with HDFC Bank to enter into TReDS (Trade receivables Discounting System)

HDFC Bank has partnered with M1xchange promoted by Mynd Solutions Pvt Ltd to make a debut in the Trade receivables Discounting System (TReDs) platform. This move is expected to bring in high liquidity to buyer corporates and MSMEs at competitive interest rates.

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TReDS is an innovative system conceived and regulated by RBI that enables financing to Micro, Small & Medium Enterprises (MSMEs) at competitive rates to address challenges of delayed payments to MSMEs. Invoices raised by MSMEs accepted by corporate buyers are funded at market determined interest rates using auction method in which multiple financial institutions bid. This also helps businesses to pay off their MSME debts in time.

MSMEs are the back bone of Indian economy and M1xchange with an end to end digital process has discounted invoices of over 11,000 MSMEs spread over 1,100 towns totaling to over Rupees 29,000 crores. TReDS enables financial inclusion of MSMEs on high scale, digitally and with a positive social impact. This financing is without any hard collateral or security and without recourse to MSMEs. The platform looks to increase its footprints in digital factoring by 25 percent to 30 percent in current fiscal alone and this partnership with HDFC Banks gives it a fillip.

“The collaboration between HDFC Bank and M1xchange is another significant step forward in the provision of financing to MSME and micro category businesses. HDFC Bank will benefit from partnering with M1xchange with shorter TAT and lower admin costs in booking additional New-to-Bank (NTB) corporate buyer relationships” said Mr Sundeep Mohindru, MD & CEO -M1xchnage.

Mr.Mohindru further added “We applaud HDFC Bank on their forward-thinking decision to join TReDS and extend a warm welcome to M1Xchange” added Mr Sundeep Mohindru.

“HDFC Bank is pleased to partner with M1Xchange in this effort to serve MSMEs. This partnership is expected to bring in more liquidity and enhance adoption of TReDS among a wider number of Corporate Customers and MSMEs,” said, Mr Vijay Mulbagal, Senior Executive Vice President, Head MNC Coverage & Supply Chain Finance, India, Head Corporate Bank (western region), HDFC Bank.

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