M1xchange Raises $10 Million from Filter Capital
• M1xchange raises Rs 84 crore (approximately $10 million) from Filter Capital.
• Investment reflects growing confidence in digital supply-chain finance for MSMEs.
• Jindal Stainless acquires a 9.62% stake in M1xchange.
M1xchange, a Reserve Bank of India-licensed Trade Receivables Discounting System (TReDS) platform, has raised Rs 84 crore ($10 million) from growth-stage investor Filter Capital in a secondary deal. The investment reflects increasing investor faith in digital supply-chain finance as a key enabler for India's credit-constrained micro, small, and medium enterprises (MSMEs).
This comes just a few days after Jindal Stainless and its subsidiary, Jindal Stainless Steelway, picked up a 9.62% shareholding in the Gurugram-headquartered fintech firm. With this funding round, M1xchange has raised approximately $45 million in primary capital from investors such as SIDBI Venture, Amazon, IndiaMART, BEENEXT, and Mayfield.
About M1xchange
Established in 2017 by Sundeep Mohindru and Vivek Misra, M1xchange runs an RBI-regulated platform that enables MSME sellers to auction invoices to banks and non-banking financial institutions (NBFCs). The platform now processes about Rs 10,000 crore (about 20 billion) in aggregate since its launch.
"This is a landmark moment in the innovation, technology-led growth, and financial inclusion journey of M1xchange," the CEO said. "Filter Capital's investment shares our long-term vision and perception of scaling tech-first businesses. Their investment solidifies our vision of building a transparent and integrated supply chain finance ecosystem for Indian MSMEs and enterprises."
Today, the exchange transacts over 50,000 MSMEs, 2,800 corporates, and 66 financial institutions with a year-on-year growth of 100% in terms of transaction volume. Operating revenue grew by 91% to Rs 56.47 crore in FY24, while net loss reduced to Rs 3.98 crore.
"India boasts more than 60 million MSMEs contributing close to 30% of GDP, but formal credit is still out of reach," said Nitin Nayar, Managing Partner and Co-founder at Filter Capital. "M1xchange has created a platform that quite effectively solves this credit deficit, and we think the team is well placed to drive scalable impact."
Zareer Shroff, Filter Capital's Principal, said, "M1xchange has always combined innovation with fiscal prudence. They have built a scalable three-sided exchange with robust network effects, to the advantage of all participants in the ecosystem."
Filter Capital, which has fintech, SaaS, and logistics in its portfolio, closed its first Rs 800 crore fund in April 2024.
• Investment reflects growing confidence in digital supply-chain finance for MSMEs.
• Jindal Stainless acquires a 9.62% stake in M1xchange.
M1xchange, a Reserve Bank of India-licensed Trade Receivables Discounting System (TReDS) platform, has raised Rs 84 crore ($10 million) from growth-stage investor Filter Capital in a secondary deal. The investment reflects increasing investor faith in digital supply-chain finance as a key enabler for India's credit-constrained micro, small, and medium enterprises (MSMEs).
This comes just a few days after Jindal Stainless and its subsidiary, Jindal Stainless Steelway, picked up a 9.62% shareholding in the Gurugram-headquartered fintech firm. With this funding round, M1xchange has raised approximately $45 million in primary capital from investors such as SIDBI Venture, Amazon, IndiaMART, BEENEXT, and Mayfield.
About M1xchange
Established in 2017 by Sundeep Mohindru and Vivek Misra, M1xchange runs an RBI-regulated platform that enables MSME sellers to auction invoices to banks and non-banking financial institutions (NBFCs). The platform now processes about Rs 10,000 crore (about 20 billion) in aggregate since its launch.
"This is a landmark moment in the innovation, technology-led growth, and financial inclusion journey of M1xchange," the CEO said. "Filter Capital's investment shares our long-term vision and perception of scaling tech-first businesses. Their investment solidifies our vision of building a transparent and integrated supply chain finance ecosystem for Indian MSMEs and enterprises."
Today, the exchange transacts over 50,000 MSMEs, 2,800 corporates, and 66 financial institutions with a year-on-year growth of 100% in terms of transaction volume. Operating revenue grew by 91% to Rs 56.47 crore in FY24, while net loss reduced to Rs 3.98 crore.
"India boasts more than 60 million MSMEs contributing close to 30% of GDP, but formal credit is still out of reach," said Nitin Nayar, Managing Partner and Co-founder at Filter Capital. "M1xchange has created a platform that quite effectively solves this credit deficit, and we think the team is well placed to drive scalable impact."
Zareer Shroff, Filter Capital's Principal, said, "M1xchange has always combined innovation with fiscal prudence. They have built a scalable three-sided exchange with robust network effects, to the advantage of all participants in the ecosystem."
Filter Capital, which has fintech, SaaS, and logistics in its portfolio, closed its first Rs 800 crore fund in April 2024.
.jpg "Mentza : Redefining Career Readiness through AI-Driven Skill Assessments & Mentoring")
