Jindal Stainless Invests in M1xchange to Boost MSME Financing

Jindal Stainless, India’s largest stainless-steel manufacturer, today, along with its wholly owned subsidiary, Jindal Stainless Steelway Limited, acquired 9.62% stake in M1xchange, India’s leading RBI-licensed Trade Receivables Discounting System (TReDS) platform. This deal involved a combination of primary capital and a secondary purchase of shares from existing shareholders. With this investment, M1xchange will continue to accelerate enabling seamless access to working capital for MSMEs and corporates, further strengthening the digital supply chain financing ecosystem in India.

Jindal Stainless’ support will enhance liquidity in the ecosystem, helping vendors and customers gain faster access to affordable credit. Additionally, this partnership will also assist Jindal Stainless digitize the financing operations, simplifying payment processes, accelerating its broader digitalization efforts, as well as reduce the overall working capital cycle, thereby enhancing operational efficiency across the supply chain structure.

Commenting on this development, Managing Director, Jindal Stainless, Mr Abhyuday Jindal, said, “At Jindal Stainless, we recognize that access to timely and affordable financing is a crucial growth enabler for businesses, especially MSMEs. This investment will have a two-pronged advantage – it will empower our domestic and international channel partners – both upstream and downstream; and provide enhanced liquidity to further strengthen JSL’s balance sheets. It reflects our ethos of building a holistic ecosystem that aligns with our vision of strengthening industry partnerships and driving inclusive economic progress.”

Mr. Anurag Mantri, ED and CFO at Jindal Stainless remarked, “The scale and reach of Jindal Stainless combined with the full suite of digital supply chain financing solutions at M1Xchange, including GIFT City offerings, would revolutionize traditional financing practices and pave the way for cheaper credit access for its entire global value chain, including the deep-tier channel”

"This investment by Jindal Stainless Limited marks a significant milestone in M1xchange’s journey of innovation, technology, and growth. Our suite of supply chain finance solutions, including TReDS for the domestic market, ITFS (GIFT City) for the global market, and our Channel Finance solution through Mynd Fintech, will empower JSL and its ecosystem partners to enhance growth and competitiveness. This strategic partnership will greatly expand access to working capital solutions for JSL’s suppliers and customers, both across India and globally," said Sundeep Mohindru, Promoter & Director, M1xchange.

M1xchange connects MSMEs with banks and financiers through its marketplace exchange platform, enabling faster access to capital. With the M1xchange TReDS platform, MSMEs can auction their invoices at competitive rates via a transparent online bidding process, securing financing against such invoices at better terms to address the payment challenges they face.

There are two subsidiaries of M1xchange – M1NXT and Mynd Fintech. M1NXT, an International Trade Finance System (ITFS), that operates as a marketplace out of GIFT City, facilitating cross-border financing in foreign currency from banks and factoring companies based in GIFT City and globally. Mynd Fintech serves as a platform for facilitating channel finance from banks and factoring companies, thereby strengthening its commitment to providing diverse and effective financial solutions.

Deloitte India acted as the exclusive advisor to Jindal Stainless Limited for this transaction.  On the legal front, Jindal Stainless Limited was advised by Dentons Link Legal and Mynd Solutions was supported by Stratage Law Partners.