India, 12th May 2025: Filter Capital, a growth-stage investment firm targeting technology-led businesses in India, has acquired approximately $10 million (84 Cr) worth of stake in M1xchange, India’s leading Trade Receivables Discounting System (“TReDS”) platform. This investment, made through a secondary transaction, highlights Filter Capital’s belief in the potential of digital supply chain finance in driving financial access for India’s micro, small and medium-sized businesses (“MSMEs”).
India’s supply chain finance sector is witnessing accelerated growth, driven by the need for faster working capital access for MSMEs and digital transformation across industries. With the RBI’s TReDS framework, digital platforms are increasingly becoming the backbone of MSME financing. Amid this evolution, M1xchange, set up by Sundeep Mohindru and Vivek Misra, has emerged as a category-defining player—facilitating invoice financing of nearly ₹10,000 crore ($1.2 billion) each month, empowering MSMEs with faster access to working capital and driving adoption across corporates, vendors, and financial institutions.
“This marks an important milestone in M1xchange’s journey of innovation, technology-led growth, and financial inclusion. 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. The investment by Filter Capital reinforces our vision of building a digitally empowered, transparent, and comprehensive bouquet of supply chain finance ecosystem for MSMEs and Enterprises in India. We remain committed to driving financial access for MSMEs and creating long-term value for our stakeholders,” said Sundeep Mohindru, Founder and CEO of M1xchange.
To date, M1xchange has facilitated over ₹1.75 lakh crore, or $20 billion, of invoice discounting. The platform has witnessed a 100% YoY growth and has a base of 50,000+ MSMEs and 2,800+ corporates with over 66 banks and NBFCs.
“M1xchange has consistently demonstrated the ability to keep innovating, while delivering revenue growth coupled with financial discipline. They have built a scalable, three-sided exchange with network effects and a clear win-win proposition for all stakeholders,” said Zareer Shroff, Principal at Filter Capital. “We are proud to partner with a team that is leading the charge in modernizing supply chain finance.”
“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,” added 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.
