M1 exchange GIFT city operations to go live in three months
Amazon backed M1 Exchange, a dedicated platform for MSME trade receivables and bill discounting, will soon start a facility at the GIFT city for MSME exporters.
M1 exchange’s trade platform has already received a licence from the Gujarat GIFT city regulator International Financial Services Centre Authority (IFSCA) along with three other platforms. The supply chain finance potential in global trade is estimated at $17 trillion.
The facility at the GIFT City will be through a 100% subsidiary.
“We will be replicating what we are doing for SMEs in India already — enabling financing for their exports by way of factoring their invoices,” said Sundeep Mohindru, chief executive officer of MYND Solutions Private Ltd, the promoter of M1 Exchange. “ We will enable invoice discounting for Indian SMEs using international banks or the banks based out of GIFT City,” he added.
The discount rate for Indian SMEs will be based on the balance sheet quality of the customer based outside India and not the quality of financials of the exporting SME.
