India’s Trade Receivables Discounting System (TReDS) platform M1xchange said on Tuesday it plans to double its business in West Bengal, as credit to the state’s micro, small and medium enterprises (MSMEs) is projected to cross ₹2 trillion ($24 billion) by the end of fiscal 2026.
West Bengal, home to nearly 10 million MSMEs and over 4.6 million units registered under Udyam, is one of India’s leading states for manufacturing, trade and exports. Credit to the sector rose 7.5% year-on-year, reflecting rising demand for working capital, according to industry data.
M1xchange, licensed by the Reserve Bank of India, facilitates invoice discounting for MSMEs, providing them with faster access to credit from banks and non-bank lenders without collateral. The company said it is focusing on sectors such as infrastructure, auto components, electricals, textiles and agriculture in West Bengal, which it sees as key growth drivers.
“MSME credit in West Bengal is projected to cross ₹2 lakh crore by FY26. We at M1xchange are committed to contributing meaningfully to this growth story,” said Kaustubh Srivastava, senior director at M1xchange. “We aim to offer competitive, collateral-free financing options via TReDS, helping businesses grow without cash flow constraints.”
So far, M1xchange has facilitated more than ₹2 trillion worth of invoice discounting across India, working with 60,000 MSMEs, over 3,000 corporates and 69 banks and NBFCs. It expects its throughput value – the total invoices processed – to reach ₹1.25 trillion by March 2026, up from ₹780 billion in FY25.
In West Bengal, more than 10% of corporates and MSMEs on the platform are from the state. Around 300,000 invoices uploaded by Bengal-based businesses have contributed nearly ₹200 billion to M1xchange’s overall transaction volume.
M1xchange has also launched a “small-to-small financing” initiative, expanding TReDS access to tier-2 and tier-3 MSMEs, enabling them to secure early payments at competitive rates.
The company said its growth plans align with state-led initiatives to promote exports and digitisation among small businesses.
