Receivables Exchange of India Ltd (RXIL), a leading invoice discounting platform for MSMEs, is aiming at business throughput of ₹40,000 crore in 2023-24, its Managing Director & CEO Ketan Gaikwad has said.

The Trade Receivables e-Discounting System (TReDS) platform had recorded business throughput of ₹25,086 crore in 2022-23, up 86 per cent on the ₹13,500 crore recorded in 2021-22.

Last fiscal we almost doubled our business throughput. This was due largely to our adding 400 corporates and the government’s  continued push to get more corporates on board,” Gaikwad told businessline.

With insurance being added to the list of activities that can be undertaken, business volumes will go up as lenders/ financiers (on the back of insurance) will be more open to take risk on low-rated corporates. .

Gaikwad said awareness among corporates about the benefits of the TReDS platform has risen considerably, and more corporates are expected to come on-board this fiscal also.

“Corporates are finding there is value-add in terms of price discovery. We are making the platform available for more MSMEs,” Gaikwad said. 

TReDS is an electronic platform for facilitating the financing/ discounting of trade receivables of micro, small and medium enterprises through multiple financiers. 

These receivables can be due from corporates and other buyers, including government departments and public sector enterprises.

One of the big benefits of TReDS is that MSMEs are not required to give collateral and there will be no recourse to them in case of defaults. 

It maybe recalled that the first transaction on TReDS in India happened on January 9, 2017 and this transaction was put through RXIL.

GeM platform

Gaikwad said RXIL is currently working with the Government e-Marketplace (GeM) platform, which is the government-owned public procurement portal. 

“We are working with the GeM platform for integration. Payment for goods procured through GeM will happen through TREDS. We can be one of the payment mechanisms,” Gaikwad added. 

RXIL in black

For the first time, RXIL, which was launched in 2016, reported profits (₹7 crore) in fiscal 2022-23. Gaikwad said he was confident RXIL would remain in the black this fiscal, too, and is targeting to wipe off its entire accumulated losses of ₹27 crore by 2025-26. 

TN government

Among the three TReDS platforms in the country, RXIL is the only one that has State Governments active on its platform. Currently, the Goa and Tamil Nadu governments are active in RXIL. 

RXIL is in talks with seven-eight more State Governments, Gaikwad added. 

He expressed confidence that the business volume coming through the Tamil Nadu government will grow in the coming quarters. 

“We entered into agreement with Tamil Nadu in August last year. There is now acceptance from the TN government and slowly MSMEs are getting benefitted from that. About ₹200-250 crore of business would have happened. Some big numbers are expected,” he added.

Asked as to how this mechanism with TN Government worked, Gaikwad said RXIL has helped set up a pre-TReDS platform where suppliers’ invoices are uploaded. The collected invoices are then put through the TReDS platform for discounting, he added.