M1xchange launches international trade financing platform for Indian MSMEs at GIFT City

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M1xchange, a digital invoice discounting platform for MSMEs, has set up an international platform —M1NXT ITFS— in GIFT City to enable Indian MSMEs avail global factoring services. 

This international trade financing services (ITFS) platform would bring global liquidity to MSMEs and benefit the ecosystem. 

Till now, Indian MSMEs didn’t have access to global banks or international factoring service providers to obtain financing or factoring (discounting of trade receivables). With this move, foreign banks registered under M1NXT ITFS can seamlessly provide trade financing facilities to Indian MSMEs, and that too at a comparatively lower cost.

This new platform went live today, and more than 30,000 Indian MSMEs (existing customers of M1xchange) will immediately benefit from it.

M1NXT ITFS has been set up by Mynd IFSC Pvt Ltd, a subsidiary of Mynd Solutions Pvt Ltd, the operator of M1xChange, India’s leading TReDS platform. 

In recent years, the Union Finance Ministry has also been directing Indian banks to improve the flow of credit to MSMEs. In fact, the recent budget had a proposal requiring banks to develop a separate credit assessment model for MSMEs based on digital footprints and cash flows.

Sundeep Mohindru, Promoter & Director of Mynd Group, said, “With M1NXT ITFS, our goal is to provide Indian exporters with easy access to working capital through a transparent and secure digital platform. This launch is a significant step in strengthening India’s position in global trade. This aligns with our vision of cost-effective financing solutions for cross-border trade”.

Munindra Verma, Chief Executive Officer of M1NXT, added, “The launch of M1NXT ITFS at India’s International Financial Services Centre (IFSC) at GIFT City, Gandhinagar showcases our commitment to innovation in Global Trade Finance. By leveraging digital channels along with growing network of partners, we bring world class technology at the fingertips of exporter and importers”.

Referring to ADB’s 2023 Trade Finance Gaps, Growth, and Jobs Survey, Verma said that India’s Financial Services technology, like ITFS, will be a credible force to address the funding gap in global trade finance, accelerating global trade and economic growth in the future.

M1NXT has launched full commercial transactions in cooperation with a growing ecosystem that currently includes SBI GIFT City IBU, SBI Frankfurt, Yes Bank, Union Bank of India, Drip Capital Inc. and several reputed exporters and importers.

Sumant Kathpalia, Managing Director & CEO of IndusInd Bank, said: “IndusInd Bank is delighted to be the first Bank to participate in export financing transactions on the M1NXT ITFS platform. This collaboration underscores our dedication to support cross-border trade finance through innovative and digital financial solutions”.

Kathpalia added that the success of these transactions highlights the transformative potential of digital trade finance platforms in enhancing efficiency, transparency, and cost reduction.