M1xchange Hits ₹100 Crore Milestone in Deep-Tier MSME Financing

India’s micro, small, and medium enterprise (MSME) credit ecosystem is entering a new era of data-driven, cash-flow–based lending, led by M1xchange, an RBI-licensed TReDS platform. The company announced that its Small-to-Small (S2S) deep-tier financing platform has surpassed ₹100 crore in monthly transaction volumes, a pivotal milestone reflecting the rising adoption of AI- and data-enabled MSME-to-MSME financing models.

From Corporate-to-MSME to MSME-to-MSME Financing

While conventional TReDS systems primarily facilitate corporate-to-MSME transactions, M1xchange’s S2S platform extends this innovation deeper into supply chains—empowering smaller vendors, subcontractors, and ancillary suppliers to access formal credit. Instead of relying on collateral or traditional balance sheets, financing decisions are now driven by validated trade data, GST records, and payment histories, enabling real-time liquidity for even the smallest businesses.

Sundeep Mohindru, Promoter & Director of M1xchange, highlighted the paradigm shift:

“Deep-tier financing represents the next phase of India’s MSME credit evolution. Crossing the ₹100 crore monthly milestone shows the ecosystem’s growing trust in data-led credit frameworks. By enabling MSME-to-MSME financing, we’re expanding the reach of TReDS and fortifying supply chain resilience.”

AI-Powered Credit Analytics and Supply Chain Liquidity

At the heart of M1xchange’s success is its Credit Analytics Engine (CAE), which integrates insights from GSTN, TReDS, and banking data to evaluate both the capacity and intent to pay. This precision underwriting model reduces the dependency on collateral while accelerating access to working capital. Financiers are increasingly leveraging this AI-driven data ecosystem to extend loans with improved accuracy and lower risk.

Closing India’s ₹25 Lakh Crore MSME Credit Gap

India’s MSME sector contributes nearly 30% to GDP and employs over 11 crore people, yet continues to face a ₹25 lakh crore credit shortfall. M1xchange’s S2S deep-tier model is helping bridge this divide by enabling cash-flow–based lending at smaller ticket sizes, ensuring faster turnaround, transparency, and inclusion.

The infusion of liquidity across upstream and downstream MSME networks is not only improving profitability but also driving growth in the manufacturing, retail, and logistics sectors—key engines of India’s economic momentum.

Strategic Growth Roadmap

M1xchange has set ambitious expansion goals:

• ₹1,500 crore annual throughput by FY 2025–26

• Double volumes by FY 2027

• ₹10,000 crore annual throughput by FY 2030

The company’s scalable and regulatory-compliant architecture is positioning it as a pioneer in the future of MSME trade finance, blending AI analytics, open banking, and decentralized credit access to strengthen India’s financial inclusion ecosystem.