KredX Gets RBI's Approval To Launch TReDS Platform

Supply chain platform KredX has received final approval from the Reserve Bank of India (RBI) to launch its Trade Receivables Discounting System (TReDS) platform, called DTX (Domestic Trade Exchange).

DTX is the fifth platform approved by RBI to operate TReDS. KredX plans to transition its clients to the new platform gradually, aiming for $2 billion in disbursements by the end of the next financial year.

TReDS is an electronic platform that helps MSMEs get financing and discounting for their trade receivables through various financiers.

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Manish Kumar, CEO and co-founder, KredX, said, “We will be moving a big part of our clients slowly and gradually onto the TReDS platform. The focus is to scale it along with our cross-border GTX platform. We will be working in parallel to ensure we migrate as many clients as possible to the latest one."

“If you look at the total addressable market based on the GST numbers that we see on a monthly basis, the bill discounting market is close to $200 billion in India on an annualised basis. Even if you combine all the platforms, they are processing close to $2.5 billion a month. Hence, there’s a massive opportunity,” said Anurag Jain, co-founder and executive director, KredX.

About KredX 

The Bengaluru-based KredX was founded in 2015 by KredX, India’s first supply chain finance platform, works with over 70,000 MSME suppliers and large corporations across the country.

So far, the company has processed transactions for over 70,000 MSMEs and 150 large corporates.