This initiative is set to bolster the financial health of MSMEs, driving growth and business continuity in the state
FinTech BizNews Service
Mumbai, May 2, 2025: In a significant move to strengthen MSME financing in one of India’s most industrially progressive states, the Government of Gujarat has signed an MoU with M1xchange, India’s leading Trade Receivables Discounting System (TReDS) platform, and its subsidiaries Mynd Fintech and M1 NXT. The partnership will enable easy, collateral-free working capital access to Gujarat-based MSMEs supplying to state government departments, PSUs, and private enterprises.
The MoU was signed by Shri. Sandip Sagale, IAS, Commissioner of MSMEs, Government of Gujarat, and Mr. Amit Sachdev, Co-founder & Chief Operating Officer, M1xchange. The initiative was supported by Shri. R.D. Barhatt, Joint Commissioner of Industries (MSME–D), Government of Gujarat, and facilitated by SIDBI–KPMG (PMU) under the leadership of Mr. Neeraj Sharma and Mr. Ayush Goel.
Gujarat contributes to 8% of India's GDP and is home to over 23.72 lakh MSMEs registered on the Udyam platform. It is one of India’s most industrially progressive states. Furthermore, the Gujarat government has mandated that 25% of annual procurement should come from micro and small enterprises (MSEs). This is in line with the state government’s acknowledgement of the MSME sector's contribution to the GDP. This initiative is set to bolster the financial health of MSMEs, driving growth and business continuity in the state.
Under this strategic partnership, M1xchange and the state government aims to boost the MSME ecosystem in the region by enabling early payment for MSMEs working for Government departments and PSUs and Private Companies based in Gujarat at very competitive prices. As part of this collaboration, an extensive awareness program will be launched jointly by the Government of Gujarat and M1xchange across key industrial clusters in the state, to onboard eligible MSMEs and educate them on the benefits of digital invoice discounting.
Amit Sachdev, Co-founder & COO, M1xchange said, “We are extremely grateful to have the opportunity to work with the Government of Gujarat to empower and enhance business opportunities for MSMEs in the state. This partnership will play a big role in addressing credit gaps faced by the MSME sector, giving them an opportunity to easily avail of receivable financing through TReDS. Our joint efforts aim to ensure that MSMEs receive timely payments, thereby improving their cash flow and fostering growth. Together, we are committed to reform the financial landscape for MSMEs in the state”
Speaking about the partnership, Shri. Sandip Sagale, IAS, Commissioner of MSMEs, Government of Gujarat, said, "MSMEs form the backbone of Gujarat’s economy, employing over 1 crore people and contributing significantly to the state’s industrial growth. With Gujarat accounting for nearly 8% of India’s GDP, it is imperative that we strengthen the financial ecosystem supporting our MSMEs. This partnership marks a significant step in enhancing access to formal credit for MSMEs working with Government of Gujarat and within the state by leveraging digital invoice discounting mechanisms through TReDS platforms. It will enable faster, easier, and collateral-free access to working capital, ensuring timely payments, improved cash flow, and reduced reliance on informal credit channels. We are confident that this initiative will empower our MSMEs, drive business sustainability, and further accelerate Gujarat’s economic momentum."
As of date, M1xchange has facilitated more than INR 1,75,000 crores worth of invoice discounting. The platform has witnessed a 100% year-on-year growth and has built a strong base of over 50,000 MSMEs and over 2800 corporates with over 66+ Banks/NBFC. Additionally, M1xchange has signed MoUs with multiple state governments, including Maharashtra, Haryana, Goa, Madhya Pradesh, and Tamil Nadu, to enhance liquidity for MSMEs in these states, ensuring timely payments at competitive rates.
