SIDBI Venture makes part exit with spectacular gain
Hyderabad / Delhi: M1xchange, India’s largest TReDS platform, has secured over INR_324 million in secondary funding from Indiamart Intermesh Limited, in a deal that provided a part exit to SIDBI Venture Capital Limited, an early investor in the company,
IndiaMART, which over the last 2 decades have successfully overcome the problems of SMEs in transforming themselves digitally, has made an investment in Mynd Solutions.
“By integrating multiple technologies, IndiaMART has been able to provide 360-degree solutions to SMEs for their online business and have earned the trust of 138mn+ buyers and 6.7mn+ sellers on their platform. The acquisition of stakes by INDIAMART in M1xchange, therefore, highlights the confidence that leading marketplace players like IndiaMART have in the robust tech infrastructure and leadership position of M1xchange,” said Sundeep Mohindru, CEO of M1xchange. IndiaMART is India’s largest B2B platform with 60% of the market and is known for transforming the dynamics of Indian SMEs by providing them a one-stop solution to transform their business digitally and reach directly to their end customers online.
The transaction illustrates that the TReDS platforms have matured into an important source of funding for the economy, easing accessibility of funds as well as recovery for the financed and the financiers.
M1xchange has further enhanced the digitization of the Supply chain finance process under TReDS guidelines, to an extent of 99% post-Covid and believe with several attendant legislation coming to facilitate the digital factoring services in the country the investment in the digital exchange will give rich dividends to the investors as was experienced by the early investors like IOF of SIDBI Venture.” said Sundeep Mohindru, CEO of M1xchange.
IndiaMART’s Founder & MD Mr. Dinesh Agarwal said, “This investment is in line with the Company’s long-term objective of offering various fintech solutions including invoice discounting for its customers bringing massive value to our business. TReDS is the future vehicle for India’s fund starved sectors attractive for the finance companies and banks as well.”
“SIDBI Venture being the first institutional investor in M1xchange has witnessed the process from the initial stage of setting up of the idea to solve delayed payments of MSMEs. Today SMEs from across 600+ locations in India access early payment for their receivables on M1xchange.
With M1xchange We have experienced the change management Fintech has brought in the country towards Digital factoring (Invoice) by banks and equal participation by large corporates as win-win for their business.” said_Mr. Mahendra Lodha, Nominee Director & Senior Fund Manager, SIDBI Venture Capital Limited.
SIDBI Venture Capital Limited has partly exited with a return on investment of around 7X, on the investment made in the first tranche in 2015
SIDBI Venture Capital Limited invested through its MSME-focused fund called India Opportunities Fund as an early investor in M1xchange. They invested at a time when Fintech was in its infancy in India and there was no trend of banks bidding for factoring digitally. We are grateful to them for believing in our vision and supporting the rapid growth of Startup over the last few years,” Sundeep said.