Jindal Stainless picks up 9.62% stake in Amazon-backed M1Xchange in latest funding round
Jindal Stainless, India’s largest stainless steel manufacturer, sees this investment as a strategic move to enhance its digital supply chain financing capabilities.
Gurugram-based Trade Receivables Discounting System (TReDS) platform M1Xchange has secured fresh funding in a round led by Jindal Stainless.
As part of the investment, Jindal Stainless has acquired a 9.62% stake in the company, which includes both primary capital infusion and secondary share purchase.
M1Xchange, backed by Amazon, facilitates invoice discounting and supply chain financing through a digital exchange, connecting MSMEs with banks and non-banking financial companies (NBFCs).
When a vendor sells goods on credit, instead of waiting for payment later, they can sell the invoice on a TReDS platform to a financier at a discount and get most of the money upfront. This helps businesses maintain cash flow while the buyer pays the financier later.
Jindal Stainless, India’s largest stainless steel manufacturer, sees this investment as a strategic move to enhance its digital supply chain financing capabilities.
"This investment will have a two-pronged advantage–it will empower our domestic and international channel partners–both upstream and downstream; and provide enhanced liquidity to further strengthen JSL’s balance sheets," said Abhyuday Jindal, Managing Director of Jindal Stainless.
"Our suite of supply chain finance solutions, including TReDS for the domestic market, ITFS (GIFT City) for the global market, and our Channel Finance solution through Mynd Fintech, will empower JSL and its ecosystem partners to enhance growth and competitiveness," Sundeep Mohindru, Promoter & Director, M1xchange, said.
Deloitte India served as the exclusive financial advisor to Jindal Stainless for the transaction, while Dentons Link Legal provided legal counsel. Stratage Law Partners advised Mynd Solutions, the parent company of M1Xchange.
Edited by Megha Reddy