Jindal Stainless Acquires 9.62% Stake In M1xchange With $18 Mn Investment

M1xchange, a RBI-licensed Trade Receivables Discounting System (TReDS) platform has raised fresh funding in a round led by Jindal Stainless, india's largest stainless steel manufacturer.

As part of the deal, Jindal Stainless has acquired a 9.62% stake in the company through a combination of primary and secondary transactions.

With this investment, M1xchange will offer working capital access to MSMEs and corporates, helping grow India's digital supply chain financing ecosystem.

Jindal Stainless stated that acquiring a 5.03% stake cost about Rs 102.7 crore ($12 million). The total cost for the 9.62% stake, including JSSL's share, is around Rs 154 crore ($18 million).

This partnership will help Jindal Stainless digitize its financing operations, improve payment processes, speed up digitalization, and reduce the working capital cycle.

Deloitte India acted as the exclusive financial advisor for the deal, while Dentons Link Legal and Stratage Law Partners provided legal advice.

This investment is a major step in digitizing supply chain financing and helping MSMEs access working capital more quickly.

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Managing Director of Jindal Stainless, Abhyuday Jindal, said, "At Jindal Stainless, we recognise that access to timely and affordable financing is a crucial growth enabler for businesses, especially MSMEs. This investment will have a two-pronged advantage – it will empower our domestic and international channel partners – both upstream and downstream; and provide enhanced liquidity to further strengthen JSL's balance sheets."

Anurag Mantri, ED and CFO at Jindal Stainless said, "The scale and reach of Jindal Stainless combined with the full suite of digital supply chain financing solutions at M1Xchange, including GIFT City offerings, would revolutionize traditional financing practices and pave the way for cheaper credit access for its entire global value chain, including the deep-tier channel." 

"This investment by Jindal Stainless Limited marks a significant milestone in M1xchange's journey of innovation, technology, and growth. Our suite of supply chain finance solutions, including TReDS for the domestic market, ITFS (GIFT City) for the global market, and our Channel Finance solution through Mynd Fintech, will empower JSL and its ecosystem partners to enhance growth and competitiveness," said Sundeep Mohindru, Promoter & Director, M1xchange.

About M1xchange 

Founded in 2016 by Sundeep Mohindru and Anurag Chaturvedi, M1xchange is a digital platform for invoicing and discounting that helps meet working capital needs without complex bank processes. The company earns revenue through professional fees for these services.

Since its launch, M1xchange says it has partnered with over 65 banks, 2,000 corporates and more than 48,000 MSMEs, facilitating the discounting of invoices worth over Rs 160,000 crore.

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