MonetaGo delivers milestones in strategy for trade finance de-duplication in India
By Leandra Monteiro
Four years after commencing a mission to prevent duplicate financing of invoices in India, MonetaGo underlines major progress in delivering on its commitments, including transforming the speed and transparency of invoice financing and unlocking the value of disparate information spread across multiple organisations and data silos.
The service was launched in partnership with three trade receivables finance exchanges licensed under the Reserve Bank of India-supported Trade Receivables Discounting System (TReDS), that allows SMEs to auction their trade receivables from corporate customers on each of the receivables finance exchanges’ digital platform, MonetaGo implemented its Secure Financing system in India in March 2018.
“Each exchange needed to be able to identify whether an invoice had been financed by their competitors, but for commercial reasons needed a solution that kept customer information private,” said Jesse Chenard, founder and CEO of MonetaGo. “MonetaGo’s solution enabled the exchanges to share select document information, which is cryptographically hashed to create document fingerprints that are then pushed to MonetaGo’s secure, unified data repository to detect matches in near real time.”
With MonetaGo bringing much-needed trust into the system, the number of transactions financed via TReDS has experienced tremendous growth, from INR 111.65 billion in the financial year ending March 2020 to INR 343.62 billion in the financial year ending March 2022. MonetaGo has now processed over 2.5 million transactions, with a total value of INR 692.7793 billion.
The innovations MonetaGo has brought to the Indian market over the last 48 months are central to its strategic agenda to de-duplicate global trade finance. Users of the Secure Financing system in India has been expanded to include commercial banks (accessing via SWIFT India) and non-bank financing companies (accessing via direct interface). MonetaGo has support from across the financial community for the transformation it is driving and is currently rolling out the Secure Financing platform accessible via the global SWIFT network.
“It has been a great association with MonetaGo for the past four years, with MonetaGo going from strength to strength. Factoring is an important financial instrument for SMEs to solve liquidity problems, but the business model requires a stringent framework to avoid fraud via double financing. MonetaGo’s invoice fingerprint mechanism has helped TReDS platforms ensure the legitimacy of invoices and eWay Bills provided for financing. MonetaGo has been crucial towards helping RXIL achieve the goal of timely financing for MSMEs,” said Ketan Gaikwad, CEO and managing director of RXIL.
“At no time in history has the world had a greater need for the Secure Financing platform. MonetaGo helped us by adding a critical layer of important control for our domestic factoring proposition in India. India Factoring and Finance Solution Pvt. Ltd. is glad to have been associated with MonetaGo since the early days of the Secure Financing solution and keenly look forward to the implementation of the global solution,” said Ravi Valecha, CEO of India Factoring.
“It has been a prodigious journey with MonetaGo as a tech partner,” said Sundeep Mohindru, CEO of M1xchange. “M1 collaborated with MonetaGo to eliminate the risk of any duplicate discounting of domestic trade invoices. The blockchain platform was set up swiftly in terms of solution and production support. We are delighted to extend this journey to the next level where M1 and MonetaGo are working together to implement solutions for a wider range of export/import invoices.”
IBSi Daily News Analysis
May 26, 2023
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