IndiaMART Invests Rs 38 crore In The TReDS Platform M1xchange

Through Mynd Solutions, TReDS platform M1xchange raised Rs 38 crores from its current investors, B2B platform IndiaMART, and mission capital fund Beenext, for an additional 3.4% and 1.99% equity stakes, respectively. The deal also represents the exit of India Opportunities Fund, an early investor in M1xchange, through SIDBI Venture Capital, the VC division of SIDBI. Two current traders within the company are the international venture capital firm Mayfield and Amazon.

"transaction (investment) illustrates that the TReDS systems have matured into a crucial supply of investment for the economy, easing accessibility of price range to greater than 13,000 MSMEs in addition to healing for the financed and the financiers.” according to M1xchange, which stated it has discounted invoices totaling Rs 34,000 crores of more than 13,000 MSMEs to this point.

According to Sundeep Mohindru, CEO of M1xchange, the MSMEs' credit scores are the primary factor in bill discounting, which makes financing costs very reasonable. “This makes MSMEs greater aggressive in pricing to their consumer even as banks have additionally benefitted from M1xchange as this has opened a brand new road of enterprise for banks.”

According to data provided by a website, M1xchange raised an undisclosed Series A round from SIDBI and Mayfield in January 2019. This was followed by rounds totaling $4.5 million led by Beenext in December 2020, $10 million led by Amazon in April 2021, and approximately $4.0 million led by IndiaMART inside the secondary market in November 2021. According to Mahendra Lodha, Nominee Director & Senior Fund Manager, SIDBI Venture Capital Limited, with the exit inside the current round, SIDBI Venture Capital has made exceptional returns on its second tranche of fundraising completed in 2019, knowing round four.6X on its general funding.