Central Bank of India Joins KredX to Boost MSME Financing

KredX, India's leading integrated supply chain finance provider, today announced a strategic partnership with the Central Bank of India to extend working capital financing to a wider network of businesses on its RBI-licensed Domestic Trade Exchange (DTX) platform. This collaboration will significantly increase the availability of funds for businesses, reinforcing the shared commitment to strengthening India's supply chain finance ecosystem.

The partnership leverages the strengths of both organisations: Central Bank of India's robust financial backing and extensive reach, and KredX's innovative, tech-driven DTX platform. Through this alliance, sellers registered on DTX will gain direct access to financing from the Central Bank of India, enabling them to secure prompt, collateral-free payments for their trade receivables. Additionally, the partnership will enable the buyers to manage their payables efficiently while ensuring their compliance with the government mandate to register on a TReDS platform.

Manish Kumar, Founder and CEO, KredX, stated, "By joining forces with the Central Bank of India, a pioneer in Indian banking, we are not just adding a new financier to our platform; we are unlocking a new era of growth for countless MSMEs. Additionally, we are enabling corporate buyers optimise their cash flow and ensure a seamless, compliant supply chain. This partnership marks a significant milestone in our mission to strengthen the Indian economy by democratising supply chain finance for businesses in India.”

"Our alliance with KredX and its DTX platform aligns perfectly with our vision to provide timely and adequate finance to the MSME sector. This partnership will allow us to leverage KredX's advanced digital ecosystem to efficiently extend credit to MSMEs and contribute to their financial resilience and growth. We are confident that this collaboration will create a powerful and secure channel for supporting the nation's business ecosystem," said Mr. Sohail Ahmad, General Manager, Central Bank of India.

KredX is dedicated to building a digital, transparent supply chain finance ecosystem where businesses can easily access working capital and seamlessly manage their cash flow. This mission is supported by active collaborations with government bodies, including a notable Memorandum of Understanding (MoU) with the Ministry of Micro, Small, and Medium Enterprises (MoMSME) for its DTX platform. KredX will continue to strategically expand its network by forging partnerships with leading banks and NBFCs, as these collaborations are crucial to our goal of democratising finance for all businesses.

KredX’s DTX platform, approved under the RBI’s TReDS framework, offers a digital-first solution for end-to-end trade finance. Connected to 50+ financiers and designed to enable bidding on trade receivables, DTX provides businesses with access to the lowest cost of finance, an intuitive user experience, and seamless execution. DTX also enables suppliers to access working capital instantly, while allowing buyers to optimise cash flows and build more resilient supply chains. By integrating intelligent automation, real-time processing, and intuitive workflows, DTX ensures a frictionless experience for buyers, sellers, and financiers alike. The initiative aligns with the Government of India’s mandate for companies with a turnover exceeding ₹250 crore to onboard TReDS and integrate with the GSTN, promoting digital financing and regulatory compliance. This also supports KredX’s goal of achieving ₹15,000 crore in disbursals and empowering 15000 MSMEs by the end of this fiscal year.