Jindal Stainless, India’s largest stainless steel manufacturer, has acquired a 9.62 percent stake in M1Xchange, reinforcing its commitment to supply chain financing. This investment will drive digital supply chain financing for MSMEs, corporates, and financiers, ensuring improved liquidity access and streamlined financial operations.

By leveraging M1Xchange’s platform, Jindal Stainless aims to digitize financing, optimize cash flow, and enhance its supply chain ecosystem.

The investment, totaling approximately INR 154 crore ($18 million), includes primary capital infusion and a secondary share purchase from existing shareholders. According to Jindal Stainless, the cost of acquiring a 5.03 percent stake is around INR 102.7 crore ($12 million).

This move aims to enhance digital supply chain financing, enabling businesses to accelerate payments and improve operational efficiency. By leveraging M1Xchange, Jindal Stainless will streamline financial transactions, reduce the working capital cycle, and digitize supplier payments.

M1Xchange: A Game-Changer in Supply Chain Financing

Founded in 2017, M1Xchange operates under the Trade Receivables Discounting System (TReDS) framework, facilitating invoice discounting for businesses without requiring them to go through complex banking processes. The platform has onboarded over 65 banks, 2,000 corporates, and 48,000 MSMEs, facilitating invoice discounting worth more than INR 160,000 crore.

M1Xchange generates revenue through professional fees charged for its services. The company has raised over $19 million from prominent investors, including Amazon, IndiaMART, SIDBI Venture, BEENEXT, and Mayfield. According to the startup data, SIDBI holds a stake of 11.85 percent, while Amazon controls 9.75 percent of the company.

Jindal Stainless Eyes Growth and Efficiency

Jindal Stainless views this stake acquisition as a critical step in supply chain digitization. Managing Director Abhyuday Jindal emphasized that the investment will empower domestic and international channel partners, enhance liquidity, and fortify the company’s financial position.

Additionally, M1Xchange provides a comprehensive suite of financing solutions, including TReDS for India, ITFS (GIFT City) for global markets, and Channel Finance via Mynd Fintech. These solutions are expected to help Jindal Stainless and its partners scale operations more efficiently while improving overall financial stability.

For the fiscal year ending March 2024, M1Xchange reported a 91 percent surge in revenue, reaching INR 56.47 crore, compared to INR 29.52 crore in FY23. Meanwhile, the company reduced its losses by nearly 50 percent, bringing them down to INR 3.98 crore. These figures highlight the growing adoption of digital supply chain financing solutions among businesses in India.

This strategic alliance marks a major step in the evolution of supply chain financing, driving MSME empowerment and fostering economic growth. As businesses increasingly shift toward digital-first financing, M1Xchange and Jindal Stainless are poised to redefine financial accessibility and efficiency.

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