Supply chain financing platform KredX has received the Reserve Bank of India's approval to launch a TReDS platform to facilitate financing of trade receivables of MSMEs. 

The Bengaluru-based fintech becomes the fifth platform in the country to launch its invoice discounting solution under the brand name 'DTX' (Domestic Trade Exchange) on TReDS.

RXIL, M1xchange, Invoicemart, and C2treds are existing TReDS operators.

Founded in 2015, KredX said it is targeting Rs 200 crore disbursal by the end of the current financial year. The company added that it works with over 70,000 MSME suppliers and large corporations. In 2023, the company had received the International Financial Services Centre Authority (IFSCA) license for cross-border trade finance (GTX). 

The approval from RBI comes around two months after the government in November 2024 mandated all businesses with more than Rs 250 crore turnover (from earlier Rs 500 crore) and all central public sector enterprises to onboard TReDS. 

“With recent mandates requiring companies with a turnover of Rs 250 crore or more to register with TReDS, our platform, DTX, is strategically positioned to drive compliance and accelerate adoption across the country,” said Manish Kumar, CEO and Co-founder, KredX. 

"With proposed integrations with other public platforms, we expect TReDS transaction volumes to rise to around $50 billion annually by 2026 from around $30 billion annually as of today. There is a huge potential to broaden the scope of financiers and businesses on TReDS platforms adding to the potential impact by these platforms," added Anurag Jain, co-founder and executive director at KredX.