M1xchange is an online fintech platform offering financial services like invoicing that raised Rs 84 crore through a secondary transaction in its fresh funding round from Filter Capital. The startup is going to utilize the new proceeds to expand its operations, enhance its platform, and support its digital supply chain. This is the company’s first funding since the acquisition of its stake. 

The company plans on investing some of its funds into enhancing its capabilities. The firm’s digital supply chain operations target small, micro, and medium-sized enterprises. The fintech startup also intends to use the fresh capital for general corporate purposes and strengthen its market presence while gaining the trust of its customers. The company claims to have facilitated monthly invoice financing of around 1.2 billion USD for corporates and MSMEs. 

The startup operates as a Trade Receivables Discounting System Platform. The firm provides supply chain-related cash flow finance at competitive rates through an open bid process with multiple financiers. This investment came just two months after Jindal Stainless and its subsidiary acquired a 9.62 percent stake in the M1xchange. The company has investors including Amazon, SIDBI Venture Capital, and Mayfield. 

The Gurugram-based startup has raised around $47 million across multiple funding rounds since its inception, including $4.69 million secured during its series C funding round from BEENEXT, IndiaMART, and other investors. The fintech firm reported a 91 percent increase in its operating revenue to Rs 56.47 crore in FY24. The net loss decreased by 50 percent and stood at Rs 3.98 crore in the same duration. 

The development came just after the firm received increased investor interest. M1xchange claims to have facilitated over $20 billion in invoice discounting while onboarding 50,000 MSMEs, 66 financial institutions, including banks and NBFCs, and 2,800 corporates. The startup faces competition from other fintech startups in this market segment, such as Lendscape, Factorcloud, and mFactor.

The investment highlights Filter Capital’s trust in M1xchange’s business model and market potential. Filter Capital is an investment firm that focuses on tech-driven businesses in India. The company recently closed its first funding round in 2024 with a corpus of Rs 800 crore. The company’s portfolio includes Chalo Mobility, Capillary Technologies, and more. 

Conclusion:

M1xchange is a Gurugram-based fintech startup offering an online platform that facilitates the discounting of invoices and bills of exchange. The company raised Rs 84 crore in new capital through a secondary transaction from Filter Capital. The development came two months after the firm sold 9.62 percent of its stake to Jindal Stainless and its subsidiary. The company plans to use this amount to enhance its platform and support its digital supply chain finance operations. The company posted its operational revenue of Rs 56.27 crore with a loss of Rs 3.98 crore in FY24.