In a significant development, M1xchange, one of the foremost exchanges dealing in Trade Receivables Discounting System (TReDS), has started transacting with NTPC limited, a Maharatna CPSU. The digital platform of M1xchange came into being in April last year to serve micro, small and medium enterprises (MSMEs), which usually struggle to stay afloat due to paucity of working capital. The coming together of M1xchange and NTPC Limited would address the financing concerns of MSMEs in the power sector, an important segment of the economy.
Launched by outsourcing and consulting firm Mynd Solutions, M1xchange has already on-boarded many large corporates, their MSME vendors and financiers (banks – public, private, foreign and NBFCs) to do the financing transactions. The use of TReDS is aimed at improving the flow of funds to the MSMEs by reducing the realization cycles of receivables. TReDS allows MSMEs to post their trade receivables on the system and get them financed.
Talking about its association with M1xchange, Mr S. C. Chavady, GM (Corporate Materials), NTPC Limited said, “TReDS is a promising concept, coming at a time when the government is also giving a push to the digital economy ecosystem. M1xchange platform would provide a reliable tool to our vendors due to its competitive pricing mechanism. We would encourage our MSME suppliers to participate and benefit from the M1xchange TReDS platform.” The NTPC Limited is of the view that the TReDS initiative has the potential to solve the working capital related issues for vendors efficiently.
Ms Neerja Kumar, GM-MSME Department, Punjab National Bank said, “We at PNB are very encouraged to see PSUs like NTPC helping their MSMEs to get early liquidity by bill discounting on M1xchange. The digital platform offers transparency and helps us take quick decisions on offering funding to MSME sector which is backbone of our economy. We are excited to be a financier on M1xchange and thank Government of India and RBI for setting up TReDS which is an innovative and inclusive platform to help MSMEs raise working capital.”
“We welcome NTPC Limited on board. It is an important development for M1xchange as it allows us to serve one of the largest PSU. This association reflects the growing trust and confidence for M1xchange. With participation of NTPC, we are able to extend the benefit of Digital financing to larger set of MSME vendors and fulfil the objective of TREDS, towards the growth of economy,” said Sundeep Mohindru, CEO, M1xchange.