Mumbai, 4th Sept 2024: NPCI Bharat BillPay Ltd. (NBBL) B2B Platform and M1xchange, India’s top TReDS (Trade Receivables Discounting System) platform, have established a strategic alliance as part of an initiative to tightly connect accounting systems, business payments, and invoice discounting marketplaces. Through this partnership, companies will be able to use their accounting software to easily access low-cost invoice financing on TReDS. For the TReDS registered businesses, this new financing option will improve the effectiveness of commercial payments throughout India.The Global Fintech Fest 2024, hosted in Mumbai, opened with a live demonstration of this partnership’s utilization of Zoho accounting software in conjunction with M1xchange via the Bharat Connect B2B platform, presented by RBI Governor Shri Shaktikanta Das.
Through this interface, businesses who have already enrolled on the TReDS platform can use invoice financing from a variety of financiers right within their accounting software, including Easebuzz, Happay, and Zoho Books. Businesses now have the option to initiate a request for financing of the invoice(s) when they raise an invoice through the accounting platform of their choice. This request is sent straight away to TReDS (M1xchange), where, following various financiers’ bids, a competitive financing rate is returned to the accounting software via the NPCI Bharat Connect B2B-managed API architecture. The business user merely needs to interact with their accounting software for the business to accept the financing offer, and the funds are disbursed within 24 hours.
Sundeep Mohindru, Promoter & Director of M1xchange, said, “This partnership with NPCI Bharat BillPay is a major advancement in tackling the major difficulties that companies encounter while handling B2B payments. We are making it simpler for buyers and sellers to obtain working capital as needed without having to exit their accounting programs by including invoice financing straight into the Bharat Connect platform. This smooth experience will increase liquidity, shorten payment cycles, and promote financial inclusion for businesses all around India, especially MSMEs.
Ms. Noopur Chaturvedi, CEO of NPCI Bharat BillPay Ltd. said, “Partnering with M1xchange was a strategic decision for us as we recognize the critical role that timely access to working capital plays in driving business growth and sustainability. By integrating TReDS capabilities into the Bharat Connect for Business, we are addressing a significant gap in the market—enabling businesses, especially MSMEs, to streamline their payment processes without disrupting their existing workflows. This collaboration underscores our commitment to fostering innovation and enhancing financial inclusion by providing a comprehensive, secure, and efficient solution that supports the evolving needs of businesses across India.”
The first transaction for the integration of Bharat Connect and TReDS platforms of M1xchange was demonstrated live at the Global Fintech Festival. This transaction, conducted in a live production environment, demonstrates the robustness and readiness of the solution for widespread adoption.
About M1xchange
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 60+ Banks, 1,600+ corporates, and 35,000+ MSMEs and has facilitated discounting of invoices of more than Rs 1,10,000 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.
