[Funding alert] TReDS platform M1xchange raises $10M funding from Amazon, others

Last year, M1xchange had raised USD 4.5 million (about Rs 33 crore) in funding from Beenext Asia, Singapore and Mayfield.
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TReDS platform M1xchange on Thursday said it has raised $10 million in funding, led by ecommerce major Amazon. The funding round also saw participation from BEENEXT and existing investor, Mayfield, a statement said.

Last year, M1xchange had raised $4.5 million in funding from Beenext Asia, Singapore and Mayfield.

The TReDS platform facilitates micro, small and medium enterprises (MSMEs) to get a payment of their invoices raised to their corporate customers from banks in 72 hours.

The banks make the payment to MSMEs on invoices presented before them through TReDS based on the credit record of the corporate, and the payment is later made by the corporate to the banks.

Since its launch over three years ago, M1xchange has discounted invoices totalling $1.7 billion across 10,000 MSME suppliers

"We are proud to welcome a global technology company like Amazon to join us as a shareholder in our goal to become a leader in supply chain finance. Over the last decade, India has gone through a sea change in the enormous number of MSMEs now selling their wares online," Sundeep Mohindru, Chief Executive Officer of M1xchange, said.

He added that the company's approach to supply chain finance will also benefit the large ecosystem of vendors built by Amazon in India.

"This investment comes at a time when M1xchange is working towards integrating this secured marketplace for receivables financing with other government digital initiatives. With this new funding, we plan to further expand our reach beyond the 352 cities from where MSMEs currently enjoy the benefit of discounted invoices," he said.

M1xchange connects MSMEs with banks and financiers (and vice versa) through the marketplace exchange and an MSME can assign its invoice dues to a bank or financier and receive financing at better rates, thereby, solving the payments challenge for MSMEs, Amazon said in its statement.

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