A small vendor from Gujarat supplying chemicals to a large petroleum corporation listed its invoice worth Rs 1.5 lakh on the M1Xchange discounting platform. After the corporation approved the invoice, the vendor received multiple bids from banks within minutes.

The vendor picked the best bid—the one with the least waiver—and almost immediately received the funds from the bank. This money will help the vendor produce another batch of chemicals for another client.

The online bidding, witnessed by YourStory, represents a typical scenario on the M1xchange platform, wherein at least three to four banks bid on each invoice put up by small and medium enterprises.

M1xchange is one of the four regulated trade receivable discounting (TReDS) platforms in India, alongside RXIL, A.TReDS, and C2treds. The online platform allows small and medium-sized businesses—like the vendor from Gujarat—to discount their invoices to receive payment faster. This way, vendors don’t have to wait for payment from their clients and have adequate funds to cover their working capital needs.

Amazon-backed has M1xchange has helped businesses encash invoices worth more than Rs 1.3 lakh crore since its inception in 2017. In FY25 alone, the fintech firm aims to discount invoices worth Rs 72,000 crore.

FY24 has been a year of robust growth for the M1Xchange platform. It achieved a 104.8% increase in revenue, reaching Rs 52.95 crore, compared to Rs 25.85 crore in FY23. Its profits grew nearly six-fold—from Rs 1.65 crore in FY23 to Rs 9.44 crore in FY24.

The platform expects the growth to continue this year as well, with revenue nearly doubling.

Sundeep Mohindru, Founder and CEO of M1Xchange, in an interview to YourStory, says M1Xchange’s revenues are set to cross Rs 100 crore in FY25, and profitability will continue to rise. He also aims to onboard 500 corporates and double the number of MSMEs on the platform in the current year.

Currently, M1xchange has 40,000 SMEs and 1,500 listed buyers on its platform.

What makes M1Xchange bullish about its growth prospects? Mohindru attributes this to growing awareness of invoice discounting as a viable financing option among small and medium businesses and the government’s support to MSMEs and thrust on exports.

Recently, the government reduced the turnover threshold for buyers to get on the TReDS platform —from Rs 500 crore to Rs 250 crore. This is likely to bring 7,000 companies onto the TReDS platforms, says Mohindru, who is also a promoter and director of the platform.

“With outstanding MSME dues exceeding Rs 21,000 crore, as reported on the Samadhan Portal, this significantly expands access to timely, structured financing options. It facilitates prompt payments for MSME goods and services, addressing a major pain point in the market.”

How TReDS works

Imagine you are an MSME supplying raw materials to a large corporate client. You’ve just delivered a shipment, but the payment is scheduled for 30 days later—a standard practice in the industry. 

However, you need working capital immediately to produce another batch of materials for another client, and asking for an advance is not an option.

Before 2017, your choices for addressing the working capital issue were limited. Typically, you’d approach a bank for a loan at a high interest rate, along with collateral requirements. But if your assets are already pledged against a prior loan, this can be a roadblock.

In 2017, the Reserve Bank of India introduced a solution: the trade receivables discounting system (TReDS). The platform allows you to convert trade receivables into cash without collateral. 

It enables you to sell your invoice for a large corporate client at a discount to banks or NBFCs that bid for the invoice. The financial institution that wins the bid disburses funds almost immediately. So, instead of waiting for 30 days or more for payment from the client, you have immediate cash for your working capital needs. 

On the due date, the corporate client pays the financial institution the original invoice amount.

From tackling early challenges to tasting success 

While M1xchange has clocked a strong financial performance in FY24, on the back of strategic operational efficiency, as detailed in its recent earnings report, its early days were not a cakewalk.

When TReDS was introduced, it was not easy to convince large corporate buyers to participate on the platform and validate invoices. 

“Initially, corporates were resistant, questioning as to why they should come on board for something that seemingly only benefitted SMEs,” Mohindru recalls.

“The rate of discount that the SMEs were getting on M1Xchange ranged between 7% and 10%, compared to the 12-15% interest they’d pay outside the platform. This saving was due to the corporate’s goodwill; so we encouraged SMEs to share a part of this saving with their corporate clients,” says Mohindru.

With SMEs sharing their savings, corporations saw a tangible financial benefit from participating on the platform. Over time, their initial hesitation gave way to fruitful engagement.

Due to the disruptions caused during the COVID-19 pandemic, supply chain resilience became a priority, leading corporates to back SMEs to ensure continuity.

Corporations realised that supporting their suppliers enhanced their own supply chain’s resilience and digital efficiency. The end-to-end digital nature of the platform meant that every invoice approval, payment, and transaction could be monitored seamlessly, thus reducing the administrative overhead associated with traditional payment methods.

Mohindru emphasises, “Post-COVID, companies became more digital-savvy, realising that digitising their supply chain would bring cost reductions and efficiency.”

As a result, large corporates not only agreed to board the platform, they were also open to using their own credit score to enable SMEs to avail themselves of invoice discounts.

In the initial days, engagement from banks was also a challenge, as they were unaccustomed to the platform’s bidding model.

“The banks initially asked, Why should we bid? The SME needs money, and they come directly to our branches.”

However, Mohindru explains, banks soon realised that the platform allowed them to expand their SME portfolio without investing in physical branch infrastructure.

“Today, banks recognise this as a business opportunity with no overhead investment. They come onto our digital platform and access the entire customer base in one place,” he says.

This digital-first approach has attracted over 65 financial institutions, including SIDBI, SBI, and Yes Bank, all of whom actively bid on invoices, creating a competitive environment that ultimately benefits SMEs with lower financing costs.

The competitive bidding model has become a core strength of M1xchange, where invoices are openly bid upon, resulting in the best rates for SMEs, says Mohindru.

“On an average, we see three to four banks bidding on each invoice, driving down the cost of finance for SMEs … Banks are very aggressive now,” he notes.

Cross-border financing

In an extension of its service offering, M1xchange has launched a cross-border financing platform within India’s GIFT City, where international banks can also participate in financing Indian exports. 

This initiative aims to make export financing more accessible and affordable for Indian exporters, with discount rates that are typically 1-2% lower than domestic options. 

“International banks familiar with the buyer take on the credit risk and finance the transaction, providing liquidity to Indian exporters,” remarks Mohindru.

He is confident that cross-border trade financing will take off in the coming days, thanks to the government’s push to expand exports.

“The government has big aspirations for India to become a global leader, and exports are at the heart of this vision. For India to achieve its goal of becoming a $5-trillion economy, exports will need to grow many times over.”

The cross-border initiative marks the beginning of M1xchange’s global expansion plan. The platform has launched the TReDS solution in Nigeria and aims to expand further in Africa, leveraging the technology infrastructure that exists in India. 

“With the same system, we’ve been able to offer financing to Nigerian SMEs who are now able to discount invoices from Nigerian corporates. We’re exploring new African markets and expect to launch in more countries over the next 6-12 months,” says Mohindru. 

Competition

M1xchange competes with heavyweights in the market. RXIL is a joint venture between prominent financial institutions SIDBI, NSE, State Bank of India, ICICI Bank, Yes Bank, and Axis Bank. 

Another entity is Invoicemart, a digital invoice discounting platform by A. TREDS, a joint venture between Axis Bank and mjunction Services Ltd., a B2B ecommerce company.

RXIL, which reported a profit of Rs 8.5 crore in FY2022-23, is reportedly targeting a 35% share of India’s invoice discounting market this year. 

Despite growing competition, Mohindru is optimistic about the opportunities for M1Xchange.

“All platforms are doing well, and there’s no clear winner in the market as of now,” says Mohindru, highlighting that competition remains balanced within the regulated space. Each platform holds roughly an equal market share, he adds.

A relatively new platform is C2treds, operated by the US-based working capital platform C2FO.

Looking ahead

The director of M1Xchange believes that MSMEs and exporters are in for exciting times, bolstered by the various measures taken by the government and regulators to make financing easier and more accessible. 

“Our platform is one part of this effort, helping SMEs and exporters access financing from multiple sources and increasing liquidity in the system,” says Mohindru.

“What’s really exciting is how this de-risks SMEs. When an SME discounts an invoice, they don’t have to worry about delayed payments or defaults from their buyers—that’s between the bank and the buyer. This not only makes things smoother for the SME but also strengthens the overall ecosystem. With initiatives like these, the future of India’s export growth looks very promising.”

The global pandemic has transformed the traditional office, moving away from impersonal cubicles toward vibrant, welcoming environments. This shift, often referred to as ‘hotelisation’, is redefining how we perceive and interact with our workplaces.

Picture an office that feels less like a place of work and more like a luxury hotel complete with cosy lounges, lush greenery and even concierge services. What might have once seemed aspirational is now becoming the norm for forward-thinking organisations.

The rise of hotelisation

As companies encourage employees to return to the office, they are turning to the hospitality industry for inspiration.

The hotelisation concept is about creating spaces that prioritise employee well-being and satisfaction. Gone are the days when offices were merely functional; today’s workplaces are designed to be destinations that enhance productivity and foster creativity.

Imagine entering your workspace, greeted by the aroma of freshly brewed coffee, soft lighting, and comfortable seating that invites interaction. A workplace where modern meeting rooms, equipped with the latest technology, await your next breakthrough idea. This is the essence of hotelisation—a holistic approach to workspace design that integrates the luxury and service typically associated with high-end hotels.

Comfort and community at the core

At the heart of this trend is a renewed focus on employee comfort. Companies are investing in ergonomic furniture, adaptable lighting, and climate control systems tailored to individual preferences. These changes are about more than just aesthetics; they are about creating an environment where employees feel valued and engaged.

But comfort and community extend beyond the physical workspace. A crucial aspect of this transformation is recognising the value of people. By building diverse teams, companies not only foster inclusivity but also gain a wider range of perspectives, helping them better understand client needs and create adaptable, inclusive workspaces.

Hotelised offices are also blurring the lines between work and leisure. Imagine taking a break in a rooftop garden or decompressing in a meditation room after a series of meetings. These spaces not only promote relaxation but foster a sense of community often missing in traditional office setups. By encouraging social interaction, such environments create a deeper connection between colleagues—fostering teamwork and collaboration.

Technology meets hospitality

However, hotelisation isn’t just about comfort and design—it’s underpinned by technology. High-speed WiFi, smart meeting rooms, and personalised workplace apps have become essential to creating seamless, productive environments. These technologies streamline daily operations, allowing employees to focus on what truly matters: their work. In these spaces, outdated equipment and inefficient processes are replaced with tools that empower individuals and teams to excel.

The Indian context: A cultural fit

In India, this trend resonates deeply with the country’s long-standing tradition of hospitality. The ancient Sanskrit phrase “Atithi Devo Bhava,” meaning “the guest is god,” reflects an ethos that naturally extends into business environments. Coworking spaces across India are adopting hotel-like features—offering concierge services, wellness programmes, and well-stocked kitchens—to create inviting atmospheres where employees feel supported and appreciated.

A new era for workspaces

As we look ahead, it’s clear that hotelisation will continue to shape the future of workspaces. Companies that prioritise employee well-being through personalised and flexible environments will not only attract top talent but also cultivate a more engaged workforce. A critical part of this approach is ensuring that these workspaces cater to diverse needs, both in terms of design and the workforce they serve.

In essence, the office of tomorrow promises to be more than just a place to clock in hours; it will be a sanctuary where individuals thrive both personally and professionally. As we navigate this new era of work, one thing is certain: the boundaries between work and hospitality are blurring, paving the way for dynamic environments that evolve with the needs of employees and the companies that champion them.

(Anshu Sarin is CEO of 91Springboard India.)

Quick commerce player Zepto has raised another $350 million in a funding round led exclusively by Motilal Oswal’s Private Wealth division, along with investment from Indian HNIs and family offices. 

The round saw participation from Motilal Oswal AMC, Claypond Capital, Raamdeo Agarwal, along with family offices of the Taparias, Mankind Pharma, RP Sanjiv Goenka Group, Cello, Haldiram Snacks, Sekhsaria, Kalyan, Happy Forgings, and Mothers Recipe (Desai Brothers).

The round, one of the largest domestic fundraises for a private startup in the country, comes just three months after Zepto closed its extended capital infusion with an investment of $340 million at a $5 billion valuation. This is Zepto’s third round in the last six months.

In June this year, it raised $665 million from new and existing investors, adding Avenir, Lightspeed and Avra to its captable. It currently operates more than 550 dark stores across 17 cities. 

The latest round, which takes the total fundraise this year to $1.35 billion, also witnessed participation from celebrities like Abhishek Amitabh Bachchan and Sachin Ramesh Tendulkar. 

“Motilal Oswal is a strong believer in the future of digital businesses, particularly quick commerce players like Zepto, as potential free cash flow powerhouses, “ noted Ashish Shanker, MD and CEO, Motilal Oswal Private Wealth in a press note. 

Earlier this week, Motilal Oswal Financial Services marked its coverage on Swiggy with a neutral rating. The brokerage flagged that Zepto holds a higher market share than Swiggy in the quick commerce segment. Based on Q1 FY25 numbers, Blinkit is leading with a 46% market share, while Zepto and Instamart both hold 29% and 25% market share, respectively. 

This comes just days after Zepto announced its plans to roll out Zepto Cafe nationwide as the service exceeded more than Rs 160 crore annualised revenue run-rate, with 15% of the company’s dark store network sustaining at the unit economics level. It expects to build the cafe into a Rs 1,000 crore revenue business by next year by launching more than 100 new cafes every month. 

Focus on Cafe services out of its quick commerce arm is in line with Zepto pushing up average order values on the platform, with users ordering small snacks and drinks along with larger grocery orders.  

This comes as investors and analysts closely track category mix and average order value across platforms in a space that is seeing traction from larger ecommerce spaces as well as retail giants.