Global on-demand working capital platform C2FO’s TReDs platform C2treds on Thursday announced that it has gone live with India’s largest bank State Bank of India (SBI) and Dabur India Ltd. among the inaugural participants on the platform.
C2FO’s wholly-owned subsidiary C2FO Factoring Solutions had received the final approval from the Reserve Bank of India in March 2024 after an in-principle approval back in November 2022 to set up and operate as one of the TReDS platform in India, becoming the fourth such platform to get the license to operate TReDS after Receivables Exchange of India Ltd (RXIL), M1Xchange and Invoicemart.
TReDS, an initiative introduced by the RBI and backed by the MSME Ministry serves as an electronic platform facilitating the financing and discounting of trade receivables of MSMEs through multiple financiers in order to solve their working capital-related challenges.
With C2treds live, C2FO said it is the only fintech platform of scale in India offering both Early Pay (Dynamic Discounting) and TReDS functionalities that also enables large enterprises to create sustainable supply chains and achieve incremental savings.
Speaking on the launch, Basant Kaur, Country Head, C2FO India, said, “With the launch of C2treds, we hope to unlock significant economic value for MSMEs and contribute to India’s rapid, inclusive economic growth.”
With around more than 50,000 MSMEs as part of C2FO’s India network, the company intends to provide invoice financing solution to a significant number of such enterprises.
“We have had a fruitful relationship with C2FO for the past eight years, benefiting our suppliers immensely from their Early Pay Program. Choosing C2treds as our TReDS platform of choice was a natural progression, given our positive experiences with C2FO. We believe this initiative will further strengthen our relationship with C2FO and our suppliers,” said Ashok Jain, Exec. Vice President – Corporate Finance and Company Secretary at Dabur India & Rahul Sarawagi, DGM Head Treasury, expressed confidence in the platform in a joint statement.
According to an Reserve Bank of India (RBI) in December last year on the performance of the banking sector during 2022-23 and 2023-24 (till December) had noted that the number of invoices uploaded and financed on TReDS grew by more than 56 per cent during 2022-23, with the success rate (invoices financed) remaining steady at 94 per cent, FE Aspire had reported.
During FY23, 27.24 lakh invoices involving Rs 83,955 crore were uploaded across three TReDS platforms, of which 25.58 lakh invoices involving Rs 76,645 crore were financed. In comparison, 17.33 lakh invoices with Rs 44,111 crore stuck were uploaded in FY22, of which 16.40 lakh invoices amounting to Rs 40,308 crore were financed.