M1xchange, a digital invoice discounting platform for Micro, Small and Medium Enterprises (MSMEs), has raised Series A round of venture capital from Mayfield India and SIDBI Ventures.

The two-year platform, set up by Mynd Solutions in April 2017, will use the investment proceeds to invest further into technologies such as blockchain, enhance its network, and boost business growth.

The quantum of Series A funding has, however, not been disclosed. This is the first-ever PE/venture capital funding for TReDS platform in India.

Expansion plans

Both Mayfield and SIDBI ventures have invested in M1xchange equally at this stage. For SIDBI, this is an expansion of their earlier investment. The current funding/capitalisation will support M1xchange’s expansion plans for the next 10-12 months. However, with changing dynamics in growth, more investment may be required.

M1xchange is among the three Trade Receivable Discounting Systems (TReDS) – online marketplaces – approved by the RBI to bring together buyers, sellers and financiers for discounting MSME invoices.

The volume of growth on M1xchange in the past 12 months reflects its successful adoption by all the participants – MSME vendors, large corporates and banks, said Sundeep Mohindru, CEO of M1xchange.

Vikram Godse, Managing Partner, Mayfield India, said the RBI and the government, through TReDS, has created a highly innovative platform, which will allow MSMEs secure financing at the lowest possible cost.

“We are excited to partner with Sundeep and the entire team at M1xchange, which has emerged as the market leader in the TReDS space. This investment continues to be in line with our focus on the fintech sector in India,” said Godse.

Mayfield India, which follows an early stage venture capital strategy, has been investing in India since 2008 and has a total of $219 million under management.

It invests in companies targeting the consumer and business sectors across technology, tech-enablers and non-tech verticals.

Related Topics
comment COMMENT NOW