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RXIL becomes the first TReDS platform to cross monthly throughput of Rs. 1,000 cr

by News Monks

Receivables Exchange of India Ltd. (RXIL), India’s leading invoice discounting platform for MSMEs, is the first TReDS platform in the country to discount receivables of more than Rs. 1,000 crores in a month. The growth of transaction volumes from Rs.69 crores in April 2020, to Rs.1,105 crore in March 2021 mimics the revival and resumption of the economic activity.

On this landmark occasion, Shri Vikram Limaye, MD & CEO, NSE said, “MSMEs play a vital role in a developing economy like ours. To achieve the goal of a USD 5 trillion economy, MSMEs must have access to formal sources of low-cost working capital finance. TReDS enables MSMEs to secure finance on the strength of their buyer’s credit rating without having to negotiate with financiers. TReDS plays a critical role in ensuring seamless liquidity to MSMEs and can play a part in filling up the credit gap. NSE is committed to providing various platforms for the MSMEs to meet their funding requirements including Equity, Debt and Working Capital.”

Shri V Satya Venkata Rao, Deputy Managing Director, SIDBI, said, “The gaining popularity of TReDS platform at a time like this is symbolic of its relevance in financial inclusion of MSMEs. We are glad that many MSMEs have joined TReDS with the support of the SIDBI’s Swavalamban Crisis Responsive Fund (SCRF) which paid the MSME’s registration fees on the TReDS platform during the pandemic. SIDBI is committed to the growth and development of the MSME sector.”

Shri Ketan Gaikwad MD & CEO, RXIL, said, “Achieving a throughput of Rs.1,100 crore is a monumental feat. We are pleased that TReDS is gaining traction and helping multitudes of MSMEs receive their payments on time. We would like to thank all our constituent partners for their support and look forward to achieving new milestones. To have an efficient working capital management and a healthy supply chain, has resulted in the corporates utilizing TReDS to ensure timely payments to their MSME sellers without affecting their own cashflows.”

RXIL has processed close to 5,00,000 invoices drawn on over 600 Buyers till date from inception in 2017 to March 2021.RXIL has the largest number of financiers on board which enables financing to over 7,000 MSMEs registered on the platform. 

In FY 2020-21, RXIL not only achieved the rare feat of monthly transaction volumes of more than Rs. 1,000 crores in March but has also emerged as the leading platform with more than Rs. 6,500 crores of throughput during the year. On a cumulative basis RXIL has processed throughput of more than Rs.10,000 crore since inception.

The Govt. with the support of RBI, Ministry of Finance and Ministry of MSME has been promoting TReDS as an effective tool to address the working capital woes of MSMEs. With timely interventions in the form of Gazette Notifications, circulars, and awareness campaigns, TReDS has been able to help the MSMEs to tide over the liquidity crisis.

Launched in 2016, RXIL, a joint venture between the Small Industries Development Bank of India (SIDBI) and the National Stock Exchange of India Limited (NSE) with State Bank, ICICI and Yes Bank as other stakeholders.

TReDS offers a win-win proposition to all the constituents viz. MSME Sellers, their Buyers – Large corporates, CPSEs, Govt. Undertakings and Financiers. It is a transparent and online auction-based price discovery platform wherein financing has been at interest rates as low as 3.99% p.a. with the average rates between 6% p.a.- 8% p.a., resulting in reduction of interest costs for the MSMEs by almost 50% for their working capital funding.

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