Filter Capital Invests $10 Million In M1xchange

Filter Capital Invests $10 Million In M1xchange

States that the country’s supply chain finance sector was witnessing accelerated growth

Growth-stage investment firm Filter Capital has invested USD 10 million (Rs.85 crore) in M1xchange, the trade receivables discounting system platform.

This investment highlights Filter's belief in the digital supply chain’s potential to drive financial access for India's micro, small and medium (MSME) businesses.

M1xchange, set up by Sundeep Mohindru and Vivek Misra, facilitates invoice financing of Rs.10,000 crore monthly. It enables MSMEs with faster access to working capital and drives adoption across corporates, vendors, and financial institutions.

The platform maintained that India's supply chain finance sector was witnessing accelerated growth, driven by the need for faster-working capital access for MSMEs and digital transformation across industries.

With the TReDS framework of the Reserve Bank of India (RBI), digital platforms are increasingly becoming the backbone of MSME financing.

Zareer Shroff, Principal at Filter Capital, stated, "M1xchange has consistently demonstrated the ability to keep innovating, while delivering revenue growth coupled with financial discipline. It has built a scalable, three-sided exchange with network effects and a clear win-win proposition for all stakeholders.”

Nitin Nayar, Co-founder and Managing Director, Filter Capital, added, "India has over 60 million MSMEs that contribute nearly 30 percent to the country's GDP, yet this segment remains severely underserved when it comes to access to formal credit.”

Meanwhile, M1xchange has facilitated over Rs.1.75 lakh crore (USD 20 billion) in invoice discounting.