Another fintech start up receives a raise.
On Friday; the fintech start up M1xchange receives funds of $ 10 million. This raise holds special importance as it is majorly focused at the development of a special segment of the economy known as Micro, small and medium enterprises. The insights into the matter can be looked upon from the article below.
MORE ABOUT RAISE
The company receives an amount of $ 10 million in a fresh round led by the e-commerce leader Amazon India with other investors like Bee Next & Mayfield. The founder Sundeep Mohindru clearly said that
“With this new funding, we plan to further expand our reach beyond the 352 cities from where MSMEs currently enjoy the benefit of discounted invoices”.
The timing of raise is also quite interesting as the company is looking forward for greater integration.Amazon India Head after taking this decision made his perspectives clear that this investment is a way to help the MSME’s grow at a fast pace. They have targeted an objective of bringing digitalisation to 10 million companies by the year 2025.
A nation-wide base in respect of customers is to be the next aim for the company so that e-commerce functionalities do not face any hassle. Maple capital advisors of Delhi acted as financial advisors for this round.
INSIGHTS INTO M1XCHANGE
The platform was launched in the year 2017 by Sundeep Mohindru ; which helps to establish a connect between MSMEs and banks/ NBFCs to bring out a stable financing mechanism for bills & invoices. It is basically an online exchange for trade receivables. It gives the discounting facility of bills at a clear price range. It serves the needs of enterprises of the nation. The investors prominently engaged are:
- SIDBI Venture Capital Limited
- Mayfield
- BEE NEXT
The company integrates with entire third-party system in the form of ERP and banking systems for complete approvals. Funds are easily provided through formal channels without any collateral.The company up till now has discounted more than Rs. 10000 crore and has strong network with 36 banks.
India has 2.5 million micro, medium & small enterprises.
They are contributing 29% to the growth of the economy.
But; the driving fuel of these enterprises is definitely the financial resources that they hold. They need constant support in terms of finance whether in form of discounts or loans to cater to the growing demands. Taking that into consideration; the fintech exchange are receiving funding to boost speed at which they are able to serve larger population of small & deserving manufacturers.
