India’s MSME sector, which contributes over 30% to the GDP and employs approximately 12 crore people, is facing a substantial credit gap of around Rs. 28.2 lakh crores. RXIL’s TReDS platform has reached a significant milestone by enabling financing for over 50 lakh invoices worth ₹1,00,000 crore since its establishment. This achievement highlights the platform’s crucial role in offering accessible working capital financing solutions to MSMEs, which are vital for economic growth and India’s goal of becoming a Rs. 5 trillion economy.
During the fiscal year 2024, RXIL experienced remarkable growth in monthly invoice financing volumes, currently facilitating financing of over INR 6,000 crores per month. With a goal of financing INR 75,000 crore worth of invoices in FY 25, RXIL is determined to enhance its performance and continue supporting the growth and prosperity of MSMEs across the country.
The RXIL TReDS platform has established a strong ecosystem with over 25,000 registered MSMEs. Through strategic partnerships and Memorandums of Understanding (MoUs) with state governments, the platform ensures prompt payments to MSMEs at competitive rates. Operating without recourse to MSMEs, the platform offers timely working capital and risk-free financing against invoices to corporate buyers, CPSEs, PSUs, and other entities.
Despite significant achievements, there is still ample room for expansion. Out of the 4 crore MSMEs registered on the Udyam portal, only 82,000 MSMEs are currently registered on all TReDS platforms. RXIL remains dedicated to its mission of bridging the gap between MSMEs and financial institutions. The goal is to ensure that every business, regardless of their geographical location or size, has access to timely working capital.
RXIL, also known as Receivables Exchange of India Limited, was established as a joint venture of SIDBI, NSE, State Bank of India, ICICI Bank, and Yes Bank. On December 1, 2016, RXIL launched India’s first Trade Receivables Discounting System (TReDS) platform under the regulatory framework of RBI. This groundbreaking initiative has been instrumental in revolutionizing the MSME financing landscape in India.