M1xchange, a Reserve Bank (RBI) approved Trade Receivable Discounting System (TReDS) license holder has raised $10 million in new round funding led by Amazon.
The round also saw participation from BEENEXT, and from its existing investor Mayfield.
“We are proud to welcome a global technology company like Amazon to join us as a shareholder in our goal to become a leader in supply chain finance,” M1xchange in its statement said.
Speaking on the investment, Sundeep Mohindru, CEO of M1xchange, said, “Our unique approach to supply chain finance will also benefit the large ecosystem of vendors built by Amazon in India. This investment comes at a time when M1xchange is working towards integrating this secured marketplace for receivables financing with other government digital initiatives. With this new funding, we plan to further expand our reach beyond the 352 cities from where MSMEs currently enjoy the benefit of discounted invoices.”
Commenting on the investment in M1xchange, Amit Agarwal, SVP and Country Head, Amazon India, said, “Sundeep is a visionary who has built a good quality service in M1xchange which has the potential to immensely benefit MSMEs in India. MSMEs are the backbone of India’s economy. Today over 7 lakh sellers sell on the Amazon India marketplace, a majority being MSMEs.”
“We are continuously exploring different ways to help MSMEs scale their business and grow. As we continue to focus our efforts to realize our pledge of digitizing 10 million MSMEs by 2025, we believe an efficient digital exchange like M1xchange will encourage many more MSMEs to adopt e-commerce to access a nationwide customer base,” Agarwal added.
“As a regulated TReDS, M1xchange is accelerating MSME digitization, simplifying B2B payments, and deeper commerce penetration across India. We are still in the early innings and the next decade will be a golden age for Bharat MSMEs. M1xchange is ready to support them through technological solutions. Amazon’s investment will help accelerate this journey,” BEENEXT partner, Hero Chaudhary said.
Talking about the funding, Vikram Godse, Managing Partner, Mayfield India, said, “We are happy to see Amazon share the same vision we had by investing in M1xchange in 2019 and look forward to working with Sundeep and the new investors in the Company to grow in this very large and underpenetrated market.”
Further adding to the statement, Mahendra Lodha, Vice President & CS, SIDBI Venture, managing VC funds & AIF primarily focused on MSMEs, said, “We are existing investors in M1xchange and witnessed TReDS solving the challenge of delayed payments to MSMEs. We welcome Amazon in this journey to enhance the cause of MSME supply chain finance.”