Invoicemart, the Axis Bank-backed TReDS platform, clocks Rs. 100 cr worth of invoices within first 100 days of operations

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  • Has on-boarded over 100 MSMEs since launch
  • The first transaction was completed on July 10, 2017 with October 17 marking 100 days of operation

Mumbai: Invoicemart, a digital invoice discounting TReDS (Trade Receivable Discounting System) platform, has clocked Rs. 100 crore in financed throughput within the first 100 days of operations. The platform’s maiden transaction was completed on July 10, 2017 and over the past 100 days, over 3,000 invoices worth more than Rs. 100 crore have been discounted and settled on it. Significantly, it has on-boarded over 100 MSMEs since its launch.
Invoicemart is a platform created by A.TREDS, a joint venture of Axis Bank, India’s third largest private bank, and mjunction services ltd., India’s largest B2B e-commerce company.
TReDS is an initiative launched by the Reserve Bank of India, with an aim to increase availability of funds for MSMEs, through the use of technology. On October 24, 2017, the Government of India made it mandatory for all major P Central Public Sector Enterprises (CPSEs) to register on TReDS within 90 days of the announcement. This is expected to give a major boost to the MSME sector with transparent price discovery mechanism and an additional avenue for getting their receivables funded.
Airing his thoughts on the significant milestone, Mr. Kalyan Basu, MD & CEO of A.TREDS Ltd. said “This is a proud moment for us at Invoicemart as the numbers prove that the market is warming up to this novel concept of TReDS. Our team has vast experience in supply chain finance and corporate banking, which has enabled us to understand our customers’ requirements in depth, and provide unique solutions to cater to the vastly different needs of our participants. We have built features into our product that make it very simple for our customers to come on board and gain significant value from participating on our platform. A lot more such features are on their way and we are confident of achieving even greater heights in the days to come.”
The sale of invoices happens by way of a transparent bidding process involving multiple financiers, which facilitates efficient price discovery, thus lowering cost of funds for MSMEs. Furthermore, funds disbursed through TReDS qualify for priority sector lending benefits for the Financiers.
Mr. Kalyan Basu further adds, “The total PSU procurement from MSEs (micro and small enterprises) in 2013-14 was over Rs. 12,000 crore, or 15% of the total procurement. The Public Procurement Policy states that 20% of all procurement by PSUs are to be made from MSEs. We are looking at an annual volume of at least Rs. 20,000 crore which will compulsorily be brought on to TReDS. This is a huge game changer, both for MSMEs as well as the TReDS initiative.”
 

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