In an initiative to closely link business payments & accounting systems with invoice discounting marketplaces, M1xchange, India’s leading TReDS (Trade Receivables Discounting System) platform has announced a strategic partnership with NPCI Bharat BillPay Ltd. (NBBL) B2B Platform. This partnership will allow businesses to access low-cost invoice financing on TReDS directly from their accounting software. This new financing solution will enhance the efficiency of business payments across India for the TReDS registered companies. This partnership’s live demo with Zoho accounting software used in conjunction with M1xchange via the Bharat Connect B2B platform was launched by Shri Shaktikanta Das, Governor of RBI on Day 1 of the Global Fintech Fest 2024 held in Mumbai.
Under this integration, companies already registered on the TReDS platform can access invoice financing across multiple financiers directly within their accounting software such as Zoho Books, Easebuzz and Happay among others. When a business raises an invoice via their chosen accounting platform, they will now have an option to trigger a request for financing of the invoice(s). This request is instantly transmitted to TReDS (M1xchange), where a competitive financing rate after bidding between multiple financiers is provided back to the accounting software via the API framework managed by NPCI Bharat Connect B2B. The business can then accept the financing offer, and the funds are disbursed within 24 hours — all with the business user only interacting with their accounting software.
Sundeep Mohindru, Promoter & Director of M1xchange, said, ” This collaboration with NPCI Bharat BillPay is a significant step forward in addressing the crucial challenges faced by businesses in managing B2B payments. By integrating invoice financing directly into the Bharat Connect platform, we are making it easier for buyers and sellers to access the working capital as and when they need without leaving their accounting applications. This seamless experience will empower businesses across India, particularly MSMEs, by enhancing liquidity, reducing payment cycles, and fostering financial inclusion. “
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.
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. Further, the financing is without recourse. MSMEs pass on the risk of receivables to the financiers (NBFCs/Banks) by selling their receivables.
