M1xchange Secures Rs 84 Crore to Enhance Digital Supply Chain Finance

M1xchange, a prominent player in the digital finance landscape, has successfully raised Rs 84 crore ($10 million) from Filter Capital through a secondary transaction. This funding will support its digital supply chain finance offerings specifically aimed at micro, small, and medium enterprises (MSMEs).

Recent Funding Developments

This latest funding round follows a significant investment two months prior, when Jindal Stainless and its subsidiary, Jindal Stainless Steelway Limited, acquired a 9.62% stake in M1xchange. To date, M1xchange has garnered over $47 million from notable investors including SIDBI Venture, Amazon, IndiaMART, BEENEXT, and Mayfield.

About M1xchange

Founded by Sundeep Mohindru and Vivek Misra, M1xchange operates as a Trade Receivables Discounting System (TReDS) platform. It facilitates invoice financing of approximately Rs 10,000 crore ($1.2 billion) monthly for MSMEs, corporates, and financiers.

Achievements Since Inception

Since its founding in April 2017, the platform claims to have enabled over Rs 1.75 lakh crore ($20 billion) in invoice discounting, welcoming over 50,000 MSMEs, 2,800 corporates, and 66 financial institutions, including banks and NBFCs.

Growth Metrics

The firm has reported a remarkable 100% year-on-year growth in transaction volumes. For the fiscal year ending in March 2024, M1xchange noted a 91% increase in its operating revenue, reaching Rs 56.47 crore compared to Rs 29.52 crore in FY23. Notably, the firm managed to reduce its losses by nearly 50%, now standing at Rs 3.98 crore.

Filter Capital’s Investment Focus

Filter Capital, a growth investment firm, targets technology-driven businesses in India, particularly in fintech, SaaS, and logistics. Its portfolio encompasses companies such as Capillary Technologies, Chalo Mobility, LoadShare Networks, and THB. The firm concluded its first fund in 2024, amassing a corpus of Rs 800 crore.