Axis Bank-backed online platform for financing Micro, Small & Medium Enterprises (MSMEs) has clocked Rs 100 crore worth of invoices within first 100 days of operations.
Invoicemart, a digital invoice discounting TReDS (Trade Receivable Discounting System) platform, was launched in July by A.TREDS, a joint venture of Axis Bank and B2B e-commerce company mjunction services.
"The platform's maiden transaction was completed on July 10, 2017 and over the past 100 days, over 3,000 invoices worth more than Rs 100 crore have been discounted and settled on it.
Significantly, it has on-boarded over 100 MSMEs since its launch," A.TREDS said in a statement today.
TReDS is an initiative launched by the Reserve Bank of India with an aim to increase availability of funds for MSMEs.
The platform enables financing of receivables of MSMEs.
"The total PSU procurement from micro and small enterprises in 2013-14 was over Rs 12,000 crore, or 15 per cent of the total procurement. The Public Procurement Policy states that 20 per cent of all procurement by PSUs are to be made from MSEs," A.TREDS managing director and CEO Kalyan Basu said.
"We are looking at an annual volume of at least Rs.
20,000 crore which will compulsorily be brought on to TReDS.
This is a huge game changer, both for MSMEs as well as the TReDS initiative," Basu added.
On October 24, the government made it mandatory for all major public sector units to register on TReDS within 90 days of the announcement. This is expected to give a major boost to the MSME sector with transparent price discovery mechanism and an additional avenue for getting their receivables funded.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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