RXIL Makes History By Becoming India’s First TReDS Platform to Announce Interim Dividend

Receivables Exchange of India Ltd (RXIL), India’s first Trade Receivables Discounting System (TReDS) platform, has announced an interim dividend of 21.6% on its shares. This marks a historic step as RXIL becomes the first TReDS platform in India to return capital to its stakeholders, showing the platform’s maturity, strong financial health, and commitment to supporting MSMEs.

What is RXIL and TReDS?

RXIL is a digital platform that helps small and medium businesses (MSMEs) get paid faster by allowing them to sell their receivables (invoices) to banks and financiers. This system is called TReDS (Trade Receivables Discounting System), and it connects MSMEs, large buyers, and financiers in a transparent digital marketplace.

RXIL was created as a joint venture by SIDBI and NSE, with support from SBI, ICICI Bank, and Yes Bank. It started operations in January 2017 after receiving RBI approval in 2016.

Milestone Dividend Reflects Growth

The interim dividend of 21.6% shows RXIL’s financial strength. It comes after the platform became profitable in 2023, erased past losses in FY24, and reported strong profits in FY25. This achievement highlights RXIL’s steady growth and its role as a reliable financing partner for MSMEs.

RXIL’s Role in MSME Financing

Since 2016, RXIL has helped finance over ₹2.6 lakh crore worth of invoices, supporting more than 57,000 MSMEs. The platform works with over 3,200 corporate buyers and 70+ financiers, facilitating monthly transactions of around ₹12,000 crore.

By providing access to working capital based on the buyer’s credit rather than the MSME’s balance sheet, RXIL has improved liquidity, reduced delays in payments, and made cash flow predictable for small businesses.

State Governments Join the Platform

RXIL is the only TReDS platform currently allowing state government participation. The governments of Goa and Tamil Nadu are already active on the platform. This move strengthens RXIL’s position as a national enabler of MSME financing and demonstrates trust in the system from both private and public sectors.

RXIL’s Journey and Achievements

• First TReDS Transaction: Executed India’s first TReDS transaction on 9 January 2017.
• Platform Growth: Monthly throughput rose from ₹223 crore in FY18 to ₹80,457 crore in FY25.
• MSME Support: Over 55,000 MSMEs benefited, with more than one crore invoices financed.
• Network Expansion: Connected 3,200+ buyers and 70+ financiers.
• Digital Innovation: Introduced easy digital onboarding for MSMEs, increasing participation and efficiency.

Future Outlook

Ketan Gaikwad, MD & CEO of RXIL, emphasized that the platform will continue strengthening the TReDS ecosystem, expanding participation, and helping MSMEs access liquidity more efficiently. As more states and institutions join, RXIL is expected to play a crucial role in the growth of India’s MSME sector.