M1xchange raises $10m to boost MSME supply chain finance in India

By Gloria Methri

Supply chain financing platform M1xchange Datalabs has raised $10 million (around INR 84 Cr) from Filter Capital via the secondary deal. The funding comes as M1xchange is looking to expand its efforts to help MSMEs access working capital through invoice discounting.

India’s supply chain finance landscape is undergoing rapid transformation, supported by the RBI’s TReDS framework and a broader push toward digital adoption across industries.

Founded by Sundeep Mohindru and Vivek Misra, M1xchange has been working at the intersection of policy, technology, and finance, facilitating invoice financing of approximately ₹10,000 crore (about $1.2 billion) every month. Its platform connects MSMEs, corporates, and financial institutions to streamline credit access and reduce payment delays.

“This marks an important milestone in M1xchange’s journey of innovation, technology-led growth, and financial inclusion. The values of Filter Capital are closely aligned with ours – long-term thinking, a customer-first execution approach, and a strong understanding of scaling technology-first businesses. The investment by Filter Capital reinforces our vision of building a digitally empowered, transparent, and comprehensive bouquet of supply chain finance ecosystem for MSMEs and Enterprises in India,” said Sundeep Mohindru, Founder and CEO of M1xchange.

To date, M1xchange has facilitated over ₹1.75 lakh crore (more than $20 billion) in invoice discounting. The platform supports a network of over 50,000 MSMEs, 2,800 corporates, and 66 banks and NBFCs, creating a three-sided marketplace designed for efficiency and shared value.

“M1xchange has consistently demonstrated the ability to keep innovating, while delivering revenue growth coupled with financial discipline. They have built a scalable, three-sided exchange with network effects and a clear win-win proposition for all stakeholders,” said Zareer Shroff, Principal at Filter Capital. “We are proud to partner with a team that is leading the charge in modernising supply chain finance.”

“India has over 60 million MSMES that contribute nearly 30% to the country’s GDP, yet this segment remains severely underserved when it comes to access to formal credit,” added Nitin Nayar, Co-Founder and Managing Partner at Filter Capital. “The Company has built a unique platform addressing this gap, and we believe this team is strongly positioned to drive meaningful and scalable impact.”