Mumbai, May 12 — Growth-stage investment firm Filter Capital has invested approximately USD 10 million (around Rs 85 crore) in M1xchange, a digital platform for trade receivables discounting, the company announced on Monday.
The investment was executed through a secondary transaction and underscores Filter Capital's confidence in the growing potential of digital supply chain finance to expand financial access for India's micro, small, and medium enterprises (MSMEs).
M1xchange: Powering MSME Growth Through Invoice Financing
Founded by Sundeep Mohindru and Vivek Misra, M1xchange claims to facilitate invoice financing worth nearly Rs 10,000 crore every month. The platform enables MSMEs to gain faster access to working capital, while fostering digital adoption among corporates, vendors, and financial institutions.The company emphasized that India's supply chain finance sector is experiencing rapid expansion, driven by a growing need for quicker working capital solutions and digital transformation across industries. With the Reserve Bank of India's TReDS (Trade Receivables Discounting System) framework, platforms like M1xchange are becoming instrumental in bridging credit gaps for small businesses.
Filter Capital Sees Scalable Value in M1xchange
Zareer Shroff, Principal at Filter Capital, praised M1xchange for its innovation and financial discipline. "M1xchange has consistently demonstrated the ability to keep innovating, while delivering revenue growth. They have built a scalable, three-sided exchange with strong network effects and a win-win proposition for all stakeholders," he said.Nitin Nayar, Co-founder and Managing Director of Filter Capital, added, "India has over 60 million MSMEs contributing nearly 30% to GDP. Yet, this sector remains severely underserved in terms of formal credit access."