SIDBI Enhances MSME Funding via C2treds

C2FO, the world's leading on-demand working capital platform, announced that the Small Industries Development Bank of India (SIDBI) is the latest financier to join C2treds, its TReDS platform. Through this strategic collaboration, C2treds aims to enhance liquidity for MSMEs at competitive interest rates.

SIDBI is the principal financial institution engaged in promoting, financing, and developing Micro, Small, and Medium Enterprises (MSMEs) in India. C2treds is C2FO’s first national funding platform that expands working capital access to MSMEs. C2FO is the only fintech platform of scale in India offering both Early Pay (dynamic discounting) and TReDS functionalities.

C2treds operates under the Trade Receivables Discounting System (TReDS) initiative which enables the discounting of invoices and is regulated by the Reserve Bank of India (RBI) to support the MSME sector in India. The platform offers MSMEs early liquidity within 24 hours through an online bidding process, utilizing a fully digital, end-to-end solution.

“As the apex institution for the promotion and development of MSMEs, SIDBI is fully committed to increasing the flow of credit to MSMEs. TReDS has become an effective tool for the prompt realization of MSMEs' receivables and SIDBI is onboarded on all operational TreDS platforms. We are confident that C2FO will leverage its network to bring in more buyers and MSMEs on its TreDS platform  to meet the Government objectives to mitigate delays in payments to MSME suppliers," said Prakash Kumar, DMD, SIDBI.

“SIDBI joining the C2treds platform will significantly amplify our efforts to support the growth of MSMEs, which are the employment engines of our country,” said Basant Kaur, Country Head of C2FO India. “By providing MSMEs with the financial support they need to thrive, we are not only unlocking their potential but also driving the economic growth of the nation. We are looking forward to partnering with SIDBI on this vital endeavour.”

The MSME sector is crucial for India's economic growth and sustainability, being the second-largest employer after agriculture. The Government of India is committed to supporting MSMEs as evidenced by several initiatives announced in the Union Budget 2024, including reducing the turnover threshold for mandatory onboarding of buyers on the TReDS platform from ₹500 crore to ₹250 crore.