Axis Bank-backed TReDS platform Invoicemart clocks its highest monthly throughput at Rs 1,000 crore in August

By: |
September 29, 2021 1:29 PM

Credit and Finance for MSMEs: Of the total bill discounting done to date worth Rs 16,000 crore, TReDS platform Invoicemart clocked a monthly throughput of Rs 1,000 crore in August 2021.

Axis Bank, TReDS platform, Invoicemart, TReDS, Prakash Sankaran A. TReDS, Prakash Sankaran Invoicemart, Prakash Sankaran Axis, Prakash Sankaran treds, Prakash Sankaran, Trade Receivables Discounting System, RXIL, mjunction, M1xchange, invoice discounting, banks, A.TReDS, monthly throughput, Credit and Finance for MSMEs, bill discounting, credit gap, sme credit, finance for MSMEs, MSMEs, small business loans, RBI, reserve bank of india, factoring amendment, MSME sellers, financiers, payment delays msmes, msme liquidity, Receivables Exchange of India, Mynd Solution, factoring regulationThe total volume of financing of MSME invoices raised on large corporates on TReDS platform Invoicemart is Rs 16,000 crore.

Credit and Finance for MSMEs: On the back of increased participation from the corporate sector, Trade Receivables Discounting System (TReDS) platform Invoicemart has said it processed the highest volume of invoices worth Rs 1,000 crore on its marketplace so far in August 2021. “It looks like we’ll do an encore in September as well,” Prakash Sankaran, MD & CEO of Invoicemart parent company A. TReDS told Financial Express Online. This took the total financing of MSME invoices done by banks on Invoicemart to Rs 16,000 crore.

Subscribe to Financial Express SME newsletter now: Your weekly dose of news, views, and updates from the world of micro, small, and medium enterprises

The Reserve Bank of India (RBI) regulated marketplace also saw the registrations increase to more than 11,000 by its three stakeholders: buyers (corporates/PSUs), MSME sellers, and financiers (banks). Of these, the highest percentage increase was by MSME vendors, at 10,000 sellers spread across 570 cities in the country.

So, what has changed? “The biggest shift is in the acceptability of the platform by corporates and PSU alike,” said Sankaran.

He added, “The platform throughput has grown by 300 per cent in the first quarter of this year when compared to the corresponding quarter of the previous year. Also, government business on Invoicemart has doubled in the last year and a half, and government entities have started showing a lot of interest in increasing volumes on the platform. This tells us that small business owners are able to get funds from TReDS and that to me is the most material metric.”

TReDS is an online platform that enables discounting of invoices of the MSME sellers raised on large buyers, through a transparent bidding mechanism by financiers. The government has been promoting TReDS as a solution to solve the liquidity crunch faced by MSME vendors due to payment delays by their corporate and government buyers.

Till date, three TReDS platforms including Receivables Exchange of India (RXIL) and Mynd Solution’s M1xchange along with Invoicemart have been licensed by RBI to operate.

The government’s recent approval to the Factoring Regulation (Amendment) Bill, 2021, which is likely to allow approximately 9,000 non-banking financial companies (NBFCs) to register as Financiers on TReDS, is expected to further boost participation on TReDS.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.