Supply chain finance platform KredX has become the fifth platform in the country to join the Reserve Bank of India’s (RBI) TReDS platform to facilitate financing of trade receivables of MSMEs. The company on Thursday said it has received the final approval from the central bank to commercially launch its invoice discounting solution under the brand name DTX (Domestic Trade Exchange) on TReDS.
RXIL, M1xchange, Invoicemart, and C2treds are existing TReDS operators.
Founded in 2015, KredX said it is targeting Rs 200 crore disbursal by the end of the current financial year. The company added that it works with over 70,000 MSME suppliers and large corporations. In 2023, the company had received the International Financial Services Centre Authority (IFSCA) license for cross-border trade finance (GTX).
The approval from RBI comes around two months after the government through a notification in November 2024 mandated all businesses with more than Rs 250 crore turnover, from earlier Rs 500 crore, and all central public sector enterprises (CPSEs) to onboard TReDS.
The announcement to reduce the turnover criteria on TReDS was made by the finance minister Nirmala Sitharaman in 2024 budget.
“With recent mandates requiring companies with a turnover of Rs 250 crore or more to register with TReDS, our platform, DTX, is strategically positioned to drive compliance and accelerate adoption across the country,” said Manish Kumar, CEO & Co-founder, KredX.
Operational since 2017, the value of invoices financed through TReDS has surged over 23 times, Michael Debabrata Patra, Deputy Governor, RBI had said at an event in November last year.
Between FY20 and FY24, invoice financing on TReDS had jumped 766 per cent from 4.8 lakh invoices financed in FY20, while the amount unlocked for MSMEs through these invoices grew by 1138 per cent from Rs 11,165 crore in FY20, according to the government data.