Filter Capital Fuels M1xchange: A $10 Million Boost for India's MSME Financing Revolution

Filter Capital invests $10 million in M1xchange, a platform revolutionizing digital supply chain finance in India. The platform spearheads financial access for MSMEs with swift working capital solutions, reflecting India's growing supply chain finance sector. With over $20 billion facilitated, M1xchange exemplifies innovative and scalable financing solutions.

Filter Capital, a growth-stage investment firm, has injected approximately USD 10 million (Rs 85 crore) into M1xchange, a trade receivables discounting system platform. This secondary transaction underscores the firm's confidence in the burgeoning digital supply chain finance sector and its potential to enhance financial access for India's micro, small, and medium-sized businesses.

M1xchange, co-founded by Sundeep Mohindru and Vivek Misra, claims to handle invoice financing of about Rs 10,000 crore each month. By doing so, it empowers MSMEs with quicker access to working capital, fostering adoption among corporates, vendors, and financial institutions. As India's supply chain finance sector accelerates growth, driven by the need for speedy working capital and industry-wide digital transformation, platforms like M1xchange are becoming crucial.

According to the statement, under the RBI's TReDS framework, digital platforms are increasingly underpinning MSME financing. Zareer Shroff, Principal at Filter Capital, commended M1xchange's innovation and financial discipline, highlighting its scalable, three-sided exchange model. Despite contributing nearly 30% to India's GDP, over 60 million MSMEs remain underbanked, noted Filter Capital's Co-founder Nitin Nayar. M1xchange has facilitated over Rs 1.75 lakh crore, or USD 20 billion, of invoice discounting to date.

(With inputs from agencies.)