M1xchange taps Tata AIG to add insurance to MSME financing

By Vriti Gothi

M1xchange has partnered with Tata AIG General Insurance Company Limited to introduce Trade Credit Insurance (TCI) within its digital ecosystem. TReDS platform integrates an insurance partner, expanding the traditional three-party structure of MSMEs, buyers, and financiers to include insurers as the fourth critical stakeholder.

The integration of Trade Credit Insurance represents a transformative step in strengthening India’s supply chain finance landscape. By mitigating credit risk, the initiative is designed to enhance the confidence of banks and financiers, unlock greater liquidity, and expand financing opportunities for MSMEs. With improved access to working capital, India’s 6.3 crore MSMEs will be better positioned to sustain growth, scale operations, and strengthen their role in the national economy.

The collaboration will offer customised insurance coverage tailored to the credit profile of each buyer, seamlessly embedded within the M1xchange platform. Integrated claims processing will ensure transparency and efficiency, making secure financing more accessible for MSMEs while encouraging broader corporate participation. The result is a more resilient and inclusive trade finance ecosystem that aligns with India’s digital transformation agenda.

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.”