RXIL’s TReDS Platform Surpasses INR 1 Trillion in MSME Invoice Financing

India’s MSME sector, contributing over 30% to the GDP and employing approximately 12 crore people, faces a significant credit gap of around Rs. 28.2 lakh crores. RXIL’s Trade Receivables Discounting System (TReDS) platform has achieved a milestone by facilitating financing of over 50 lakh invoices worth ₹1,00,000 crore since its inception. This milestone underscores the platform’s role in providing accessible working capital financing solutions to MSMEs, crucial for economic growth and India’s journey towards achieving a Rs. 5 trillion economy.

Exponential Growth and Future Targets

In fiscal year 2024, RXIL witnessed exponential growth in monthly invoice financing volumes, currently enabling financing of over INR 6,000 crores monthly. With a target of financing INR 75,000 crore worth of invoices in FY 25, RXIL aims to further elevate its performance, demonstrating its commitment to fostering the growth and prosperity of MSMEs nationwide.

Robust Ecosystem and Strategic Partnerships

The RXIL TReDS platform boasts a robust ecosystem, with more than 25,000 registered MSMEs. Strategic partnerships with various state governments through MoUs ensure timely payments to MSMEs at competitive rates. Operating without recourse to MSMEs, the platform provides timely working capital and risk-free financing against invoices to corporate buyers, CPSEs, PSUs, and more.

Room for Expansion

Despite significant achievements, there is immense room for expansion, with only 82,000 MSMEs registered on all TReDS platforms out of 4 crore MSMEs registered on the Udyam portal. RXIL remains steadfast in its mission to bridge the gap between MSMEs and financial institutions, ensuring every business has access to timely working capital, regardless of their geographical location or size.

Establishment and Regulatory Framework

Receivables Exchange of India Limited (RXIL), established as a joint venture of SIDBI, NSE, State Bank of India, ICICI Bank, and Yes Bank, launched India’s inaugural Trade Receivables Discounting System (TReDS) platform on December 1, 2016, under the regulatory framework of RBI. This pioneering initiative continues to play a vital role in transforming MSME financing landscape in India.