Jindal Stainless Acquires Stake in M1xchange

Jindal Stainless, together with its fully owned subsidiary Jindal Stainless Steelway Limited, has secured a 9.62% share in M1xchange, a platform that promotes digital invoicing and discounting for MSMEs, corporations, and financial institutions. This investment encompasses both primary capital and a secondary acquisition of shares from current stakeholders, as indicated in a press release from the company. As a result of this partnership, M1xchange will enable MSMEs and corporations to access working capital, aiding the development of India’s digital supply chain financing landscape.

According to Jindal Stainless, the price for obtaining a 5.03% stake stands at around Rs 102.7 crore ($12 million). The overall expenditure to acquire a 9.62% interest, which includes shares purchased by Jindal Stainless Steelway Limited, is estimated to be about Rs 154 crore ($18 million).

This collaboration is expected to assist Jindal Stainless in digitizing its financing methods, refining payment procedures, accelerating digital transformation initiatives, and shortening the working capital cycle.

About M1xchange

Established in 2017, M1xchange operates as a digital invoicing and discounting platform that caters to working capital needs without cumbersome banking workflows. The organisation generates income by charging professional fees for its services.

M1xchange’s Growth and Impact

Since its launch, M1xchange claims to have onboarded over 65 banks, 2,000 corporations, and more than 48,000 MSMEs, facilitating invoice discounting totalling more than Rs 160,000 crore. M1xchange has successfully raised upwards of $19 million to date from investors such as SIDBI Venture, Amazon, IndiaMART, BEENEXT, and Mayfield. Startup data intelligence platforms reveal that SIDBI holds an 11.85% stake in the firm, with Amazon following closely at 9.75%.

Financial Performance

For the fiscal year ending March 2024, M1xchange has reported a significant 91% increase in operational revenue, reaching Rs 56.47 crore compared to Rs 29.52 crore in FY23. During this period, the firm effectively reduced its losses by nearly 50%, down to Rs 3.98 crore.