M1xchange Partners with Tata AIG to Launch Trade Credit Insurance

M1xchange, India’s leading RBI-licensed Trade Receivables Discounting System (TReDS) platform, announced its partnership with Tata AIG General Insurance Company Limited, to introduce Trade Credit Insurance (TCI) on its platform. With this, M1xchange becomes the first TReDS platform in India to integrate an insurance partner into its ecosystem. This partnership establishes the insurer as the fourth stakeholder in the TReDS ecosystem, joining MSMEs, buyers and financiers.

The inclusion of Trade Credit Insurance (TCI) on the M1xchange platform is set to significantly boost confidence among banks and financiers. By mitigating credit risk, the offering will unlock greater liquidity on the platform, empowering MSMEs with vital working capital to drive their growth. The integration is also expected to attract more corporates, who will benefit from enhanced financing limits, thereby strengthening the overall supply chain finance ecosystem.

As part of this collaboration, insurance coverage will be customised to the credit profile of each buyer and seamlessly embedded within the M1xchange platform. With integrated claim processing, stakeholders can expect a smooth and transparent experience. This innovation simplifies access to secure financing for MSMEs while reinforcing the resilience and inclusivity of the wider supply chain finance framework.

Sundeep Mohindru, Promoter & Director, M1xchange, said, " The partnership with Tata AIG marks a significant step in expanding the scope of TReDS. By adding Trade Credit Insurance as the fourth participant on our platform, we are enabling financiers to take larger exposures and creating more opportunities for MSMEs to access timely working capital. This will also expand the risk-taking ability of the platform, while encouraging wider participation from financiers and corporates. Our goal is to build a stronger and more liquid trade finance ecosystem, empowering India’s 6.3 crore MSMEs to grow and compete effectively."

Deepak Kumar, Senior Executive Vice President, TATA AIG General Insurance Company Limited, said "We are pleased to collaborate with M1xchange to bring Trade Credit Insurance to the TReDS ecosystem. This partnership will provide financiers with an added layer of risk protection while ensuring MSMEs can access working capital with greater confidence. Together, we aim 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."

Additionally, M1xchange is the first to expand the scope of TReDS with its innovative Small-to-small financing initiative. This initiative has successfully brought tier 2 and tier 3 MSMEs into the formal credit system, enabling them to benefit from early payments without collateral at competitive rates.