Mumbai, India, January 31, 2019: Leading digital invoice discounting marketplace, Invoicemart, has successfully processed the discounting of a record 1.4 lakh invoices making it the first TReDs exchange to cross INR 2,000 crores in business volume. Within 18 months since its launch, the platform has scaled exponentially with the participation of more than 1300 MSME sellers and 100 buyers.
Invoicemart, owned and operated by A.TReDs Ltd. is a joint venture between Axis Bank and B2B e-commerce company mjunction that launched in 2017. It has successfully on-boarded a little under 1500 participants, which shows the growing traction of TReDS model amongst MSMEs. TReDS (Trade Receivables Discounting System) is an institutional setup for flow of finance to micro, small and medium enterprises (MSMEs) through multiple financiers at a competitive rate.
Speaking on this achievement, Mr. Kalyan Basu, CEO & MD, A. TReDS Ltd. (Invoicemart) said, “The Government’s push to support MSMEs through various measures has resulted in many private and public sector corporates registering on our platform. We are seeing an increase in the value and volume of transaction month on month basis, this trend may result in our achieving the initial estimate of ₹11,000-crores by March 2020.”
In an announcement last year, the Government came out with a Gazette notification, advising all the corporates with turnover of more than Rs.500 crores to enroll on a TreDS platform. Ministry of Corporate Affairs, Reserve Bank of India and Registrar of Companies are overseeing the progress of registering of Corporates on the TReDS platform.
"While the various data points have shown a shrinking in credit availability to MSMEs, TReDS has bucked the trend and in turn has become an enabler in providing working capital finance to the MSMEs. The time has come for factoring to take off in India and TReDS is expected to become a major source of fund flow to MSMEs in the near future. " added Mr. Basu.
Notably, Invoicemart had achieved the previous milestone of Rs. 1000 crores in September 2018 and the business volumes have doubled within 4 months to Rs. 2000 crores. This is a healthy indication towards the adoption of TReDs by the corporates as well as OMCs as two out of three have already joined the platform.
Invoicemart, a TReDS (Trade Receivable Discounting System) platform is a digital invoice discounting marketplace by A. TREDS Ltd, a joint venture between Axis Bank Ltd and B2B e-commerce company mjunction services ltd. It is a platform which connects MSME suppliers (sellers) and their corporate buyers to multiple financiers. This platform enables discounting of invoices of the MSME sellers raised on large buyers, through a transparent bidding mechanism that ensures financing of receivables at competitive market rates.
The platform allows MSME suppliers to avail finance quickly and at competitive interest rates which in turn helps increase their working capital efficiency without impacting their relationship with buyers.