Jindal Stainless acquires a 9.62% stake in M1xchange to enhance MSME financing and digital supply chain solutions.
The biggest producer of stainless steel in India, Jindal Stainless, has purchased a 9.62% share in M1xchange, a well-known Trade Receivables Discounting System (TReDS) platform certified by the RBI. Through its fully owned subsidiary Jindal Stainless Steelway Limited, this strategic investment seeks to improve liquidity, facilitate MSMEs‘ access to operating cash, and propel supply chain financing’s digital transformation.
Jindal Stainless‘ dedication to promoting industry alliances and digital finance solutions is strengthened by the investment, which consists of a main capital infusion and a secondary share acquisition from current stakeholders.
Increasing Digitalisation & MSME Financing
Through online auctions, M1xchange facilitates quicker invoice discounting by connecting MSMEs with banks and other financial institutions. This collaboration will decrease working capital cycles, increase operational efficiency, and streamline Jindal Stainless’ financing processes.
Abhyuday Jindal, Managing Director of Jindal Stainless, stated, “At Jindal Stainless, we understand that prompt and reasonably priced financing is crucial for business growth, especially for MSMEs.” “This investment strengthens our balance sheet and empowers our channel partners, which is in line with our vision of inclusive economic progress and industry growth.”
Transforming Trade Finance
Through this partnership, M1xchange will offer affordable financial access by utilising its digital solutions, such as ITFS via GIFT City for international trade financing and TReDS for domestic markets.
According to Anurag Mantri, Executive Director & CFO at Jindal Stainless, “Our collaboration with M1xchange will transform supply chain financing, cutting expenses and enhancing liquidity for our global value chain.”
The agreement, which was recommended by Deloitte India, is a significant step towards enhancing India’s MSME ecosystem and digitising financial activities.
