KredX: KredX secures licence from RBI to operate as a TReDS platform

Bengaluru-based supply chain finance startup KredX has secured approval from Reserve Bank of India (RBI) to operate as a Trade Receivables Discounting System (TReDS) platform. The company will operate this business under the brand name DTX (Domestic Trade Exchange), it said in a release today.

KredX is the fifth company to secure this licence from the central bank. The other four are: Receivables Exchange of India (RXIL), M1 Exchange, Invoice Mart and C2FO Factoring Solutions.

TReDS is a platform which allows small enterprises, who find it difficult to access formal credit from banking channels, to get their bills discounted for the products they supply to large corporations.

Founded in 2015, KredX works with over 70,000 micro, small and medium business suppliers and large corporations helping them optimise their cash flows and ensure seamless access to working capital.

The platform addresses diverse financial needs of businesses including early payments, accounts payable and receivable, financing, and automation capabilities, thereby helping firms in compliance and efficient management of their finances.

KredX, armed with the International Financial Services Centre Authority (IFSCA) licence also operates in the GIFT city and supports cross border trade facilities.

According to data from Tracxn, KredX has secured $33 million in equity funding from the likes of Tiger Global Management, Peak-XV Partners and Prime Venture Partners. “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 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,” said Anurag Jain, cofounder at KredX.

The company said in a statement that with the government mandating any company above Rs 250 crore in turnover to register with TReDS there is a massive opportunity opening up for this sector and DTX is in a good position to take a stab at that.