RXIL TReDS Surpasses INR 1Trillion (1 Lakh Crore) in Invoice Financing for MSMEs
RXIL TReDS Surpasses INR 1Trillion (1 Lakh Crore) in Invoice Financing for MSMEs
MSME contributing over 30% to GDP, faces estimated credit gap of around Rs.28.2 lakh crores
Receivables Exchange of India Limited (RXIL) Trade Receivables Discounting System (TReDS) platform has achieved a significant milestone, facilitating financing of over 50 lac invoices worth ₹1,00,000 crore since its inception providing accessible working capital financing solutions to Micro, Small, and Medium Enterprises (MSMEs) in India which plays a pivotal role in driving economic growth and facilitating the nation's journey towards achieving a Rs. 5 trillion economy.
In India, the MSME sector is a vibrant engine of growth, contributing over 30% to the country's GDP and employing approximately 12 crore people. Despite its crucial role, MSMEs often face challenges in accessing adequate financing, with an estimated credit gap of around Rs.28.2 lakh crores. Innovative digital solutions like TReDS platform have been instrumental in bridging this gap by offering tailored financial solutions which enable MSMEs gain access to timely capital at competitive rates, enabling them to invest in business expansion, modernization, and innovation.
In the fiscal year 2024, RXIL witnessed exponential growth in monthly invoice financing volumes, currently enabling financing of over INR 6,000 crores monthly. Looking forward, RXIL is poised to elevate its performance further, with a target of financing INR 75,000 crore worth of invoices in FY 25. This commitment underscores RXIL's unwavering dedication to fostering the growth and prosperity of MSMEs nationwide.
The RXIL TReDS platform is a robust ecosystem, with more than 25,000 MSMEs registered, highlighting its significant contribution to bolstering small businesses across India. Additionally, RXIL has forged strategic partnerships with various state governments through MoUs, ensuring timely payments to MSMEs at highly competitive rates. Operating without recourse to MSMEs, the TReDS platform provides them with the advantage of timely working capital and risk-free financing against their invoices to corporate buyers, CPSEs, PSUs, and more.
With only 82,000 MSMEs registered on all TReDS platforms out of 4 crore MSMEs registered on the Udyam portal, there is immense room for expansion. RXIL remain steadfast in its mission to bridge the gap between MSMEs and financial institutions, ensuring that every business has access to timely working capital, irrespective of their geographical location or size.
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.