Financing for small and medium-sized enterprises (MSMEs) on M1xchange platform now includes insurance, a service provided by Tata AIG.

In a landmark move, M1xchange, a leading platform for trade receivables discounting system (TReDS), has partnered with Tata AIG General Insurance Company Limited. This collaboration aims to introduce Trade Credit Insurance within M1xchange's digital ecosystem, enhancing risk management and financial security in trade transactions.

The partnership marks a significant step forward in expanding the scope of TReDS. Traditionally a three-party structure of MSMEs, buyers, and financiers, the TReDS platform is now expanding to include insurers as the fourth critical stakeholder.

Sundeep Mohindru, Promoter & Director of M1xchange, stated that this partnership is a significant milestone. He believes it will bring Trade Credit Insurance to the TReDS ecosystem, providing financiers with an added layer of risk protection while ensuring MSMEs can access working capital with greater confidence.

The goal of this collaboration is to mitigate payment risks, enhance the flow of trade credit in the economy, and support the growth of MSMEs through secure and reliable financial solutions. Integrated claims processing will ensure transparency and efficiency, making secure financing more accessible for MSMEs.

Deepak Kumar, Senior Executive Vice President of Tata AIG General Insurance Company Limited, expressed his pleasure about collaborating with M1xchange. He stated that this partnership is designed to offer customised insurance coverage tailored to the credit profile of each buyer, seamlessly embedded within the M1xchange platform.

With improved access to working capital, India's 6.3 crore MSMEs will be better positioned to sustain growth, scale operations, and strengthen their role in the national economy. The initiative is designed to enhance the confidence of banks and financiers, unlock greater liquidity, and expand financing opportunities for MSMEs.

The integration of Trade Credit Insurance is a transformative step in strengthening India's supply chain finance landscape. The result is a more resilient and inclusive trade finance ecosystem that aligns with India's digital transformation agenda. This partnership is set to redefine the future of trade finance in India, fostering a more secure and efficient environment for all stakeholders.