Filter Capital invests $10M in TReDS platform M1xchange

Filter Capital has acquired a stake worth $10 million in M1xchange, one of India’s largest digital platforms for trade receivables discounting, through a secondary transaction. The investment aims to strengthen its focus on financial infrastructure supporting micro, small, and medium enterprises (MSMEs), the company said.

“This marks an important milestone in M1xchange’s journey of innovation, technology-led growth, and financial inclusion,” said Sundeep Mohindru, Founder and CEO of M1xchange. “The values of Filter Capital are closely aligned with ours–long-term thinking, a customer-first execution approach, and a strong understanding of scaling technology-first businesses.”

M1xchange, a licensed Trade Receivables Discounting System (TReDS) platform under the Reserve Bank of India’s framework, facilitates over ₹10,000 crore in invoice financing each month. To date, it has processed transactions worth more than ₹1.75 lakh crore. The platform currently serves over 50,000 MSMEs and 2,800 corporates, and is integrated with more than 66 banks and non-banking financial companies (NBFCs)

The investment comes at a time when India’s supply chain finance market is expanding rapidly, driven by digital transformation and the growing demand for faster working capital solutions among small businesses.

“M1xchange has consistently demonstrated the ability to keep innovating, while delivering revenue growth coupled with financial discipline,” said Zareer Shroff, Principal at Filter Capital. “They have built a scalable, three-sided exchange with network effects and a clear win-win proposition for all stakeholders.”

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Founded in 2017 by Sundeep Mohindru and Vivek Misra, M1xchange operates as a digital marketplace connecting MSMEs, large corporates, and financiers. On the platform, MSME suppliers upload invoices, which, once validated by buyers, are auctioned to financial institutions. Funds are typically disbursed to suppliers within 24 hours, without the need for collateral or recourse.

“India has over 60 million MSMEs that contribute nearly 30% to the country’s GDP, yet this segment remains severely underserved when it comes to access to formal credit,” said Nitin Nayar, Co-Founder and Managing Partner at Filter Capital. “The company has built a unique platform addressing this gap, and we believe this team is strongly positioned to drive meaningful and scalable impact.”

Filter Capital, which closed its debut fund at Rs 800 crore in 2024, has invested across sectors including SaaS, logistics, healthcare, and mobility. Its portfolio includes Capillary Technologies, Chalo Mobility, LoadShare Networks, and THB.