Kolkata: With West Bengal’s MSME credit set to cross ₹2 lakh crore by FY26 and recent state-level initiatives driving digitization and exports promotion for the MSMEs, M1xchange, India’s leading RBI-Licensed TReDS platform for invoice discounting for MSMEs, aims to contribute to the credit growth, by bridging the working capital credit requirements of the MSME in the state. M1xchange targets to double its business with sectors such as infrastructure, auto/auto ancillaries, electricals/electronics, textiles, and agriculture, which are poised to be the key growth drivers for M1xchange.
Currently, West Bengal is a leading state for manufacturing, trade, and export, with over 4.6 million registered MSMEs under Udyam and nearly 1 crore MSMEs in total. The state’s strong industrial base spans steel, aluminium, iron products, electricals/electronics, trading, and chemical fertilizers sectors with high working capital requirements. The credit to MSMEs in Bengal rose 7.5% year-on-year, highlighting growing demand for timely and cost-effective financing. M1xchange sees this as an opportunity to scale up operations in the state, providing faster access to formal credit through its Trade Receivables Discounting System (TReDS) platform.
Till date, M1xchange has facilitated INR 200,000+ crores worth of invoice discounting with more than 60,000 MSMEs, 3000+ Corporates and 69+ Banks & NBFCs on the platform. The company is eyeing INR 125,000 crore in throughput value (total value of invoices processed) by March 2026, higher than INR 78,000 crore in FY25. Additionally, M1xchange is the first to expand the scope of TReDS with its innovative Small-to-small financing initiative. This initiative has successfully brought tier 2 and tier 3 MSMEs into the formal credit system, enabling them to benefit from early payments without collateral at competitive rates.
Aligned with West Bengal’s ambition to cross ₹2 lakh crore MSME credit by FY26, M1xchange has made significant inroads into the state. Currently, over 10% of MSMEs and corporates onboarded on M1xchange are from West Bengal. Further, around 3 lakhs of the total invoices uploaded on the platform are from the state, contributing nearly 20,000 crores to the platform’s total transaction volumes.
Kaustubh Srivastava, Senior Director M1xchange said, “MSME credit in West Bengal is projected to cross ₹2 lakh crore by FY26, we at M1xchange are committed to contributing meaningfully to this growth story. The state government’s proactive collaborations are enabling last-mile digital adoption and improving access to credit. We are also witnessing robust momentum across industries in the state, driven by a thriving MSME base and a strong entrepreneurial spirit. We aim to offer competitive, collateral-free financing options via TReDS, helping businesses grow without cash flow constraints.”
M1xchange is a TReDS (Trade Receivables Discounting) exchange that started in April 2017. M1xchange facilitates the financing of trade receivables of MSMEs from corporate buyers through ‘factoring’ or ‘invoice discounting’ by financiers (Banks and NBFC). In a short span of time, M1xchange has onboarded 69+ Banks, 3,000+ corporates, and 60,000+ MSMEs and has facilitated discounting of invoices of more than Rs 200,000 Crores. Transactions on the TReDS platform happen digitally and start when the MSME Supplier of Goods & Services raises the invoice, and the Buyer validates the same. This permits the financiers (Banks/ NBFCs) to bid against the verified and approved invoice. Once the supplier accepts the bid, the payment is processed in 24 hrs. and credited to the MSMEs bank account. Through this platform, M1xchange promises MSMEs greater access to finance” at competitive rates and without providing any collateral. Further, the financing is without recourse. MSMEs pass on the risk of receivables to the financiers (NBFCs/Banks) by selling their receivables.
-OdishaAge
