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Invoicemart, a digital invoice discounting platform for MSMEs, expects to achieve a business volume of ₹2,500 crore by the end of March this fiscal, a top official said.
The Trade Receivable Discounting System (TreDS), one of the three approved so far by the RBI for discounting MSME invoices and to provide them with timely funding, has till date processed MSME invoices worth ₹1,800 crore since its launch in July 2017, Kalyan Basu, Managing Director and CEO, A Treds Ltd, told BusinessLine .
Business target
Invoicemart, which is promoted by A Treds Ltd (a joint venture of Axis Bank and mjunction services), is sticking to its business target of achieving ₹11,000-crore throughput by March 2020.
“With the continued focus of the government on the MSME sector, we are confident of meeting our initial estimates (₹11,000 crore indicated in January 2018),” said Basu.
Basu also said that Invoicemart expects the number of financiers on its platform to go up to 30 by March-end from 20 at present (a mix of public sector and private banks).
Some of the banks that have recently come on board are Federal Bank, Oriental Bank of Commerce, and Indian Bank.
It may be recalled that Invoicemart had, as of January 2018, boarded eight financiers and 250 MSME sellers had tapped the digital platform. There were only 25 buyers. As on date, the number of MSME sellers using the platform has gone up to 1,200 and the number of buyers (large corporates) on the platform is 90.
There are now 15 central public sector entities that are registered with the Invoicemart platform.
In TreDS, buyers, sellers and financiers are brought together for discounting MSMEs invoices and to provide them with timely funding.
Buyers, sellers and financiers have to execute bilateral agreements with the TReDS platform to transact.
One of the biggest benefits of TReDS is that MSMEs are not required to give collateral, and there will be no recourse to them in case of defaults.
Basu said it would be right to conclude that the TReDS concept has taken off in the country. The coming days would see exponential growth for these entities, he added.
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