M1xchange, a leading invoice discounting platform, has entered into a strategic partnership with the Gujarat government to offer collateral-free working capital access to micro, small, and medium enterprises (MSMEs) operating in the state.

The collaboration aims to benefit small businesses that supply goods and services to state government departments, public sector undertakings (PSUs), and private firms.

As part of the memorandum of understanding (MoU), M1xchange and the state government will jointly provide early payment solutions for MSMEs at competitive interest rates, tackling the persistent challenge of delayed payments that often hampers their growth.

Amit Sachdev, Co-founder and COO of M1xchange, said the initiative is a step toward bridging the credit gap in the MSME sector. "Our joint efforts aim to ensure that MSMEs receive timely payments, thereby improving their cash flow and fostering growth," he stated.

M1xchange is one of the Trade Receivables Discounting System (TReDS) platforms recognized by the Reserve Bank of India (RBI). It facilitates the financing of MSMEs’ trade receivables from corporate buyers through a network of over 66 banks and NBFCs.

To date, the platform has enabled invoice discounting transactions worth over Rs 1.75 lakh crore (approximately Rs 1.75 trillion, recording a 100% year-on-year growth. M1xchange currently serves more than 50,000 MSMEs and 2,800 corporate clients.

This partnership adds to M1xchange’s growing list of government collaborations, which already includes Maharashtra, Haryana, Goa, Madhya Pradesh, and Tamil Nadu—strengthening efforts to enhance liquidity for MSMEs across India.