Axis Bank launches Invoicemart- A digital invoice discounting platform for MSMEs
Mumbai, July 20, 2017: Invoicemart, a digital invoice discounting platform, announced the successful completion of its first set of transactions today. Invoices raised on Sobha Ltd., West Coast Paper, Intex Technologies, Future Retail and other reputed Corporates by their MSME suppliers were discounted by Axis Bank, to mark the commencement of operations.
Invoicemartis a platform created by A.TREDS, a joint venture of Axis Bank, India’s thirdlargest private bank, and mjunction services ltd., India’s largest B2Be-commerce company.
Lately,fin-techs have been at the forefront of using digital technology to increaseavailability of funds to MSMEs. TReDS is an attempt by the RBI and Govt. ofIndia to improve access to finance by MSMEs through a digital platform withtransparent price discovery mechanism. TReDS (Trade Receivable DiscountingSystem) Guidelines are issued by Reserve Bank of India under Section 10(2) readwith Section 18 of Payment & Settlement Systems Act, 2007 (Act 51 of 2007).
The sale ofinvoices will happen by way of a transparent bidding process involving multiplefinanciers, which will facilitate efficient price discovery, thus lowering costof funds for MSMEs. Funds disbursed through TReDS will also qualify forpriority sector lending benefits for the banks.
Speaking onthe occasion, Mr.V.Srinivasan ,Deputy Managing Director,Axis Bank, said,"Axis Bank has got a very strong MSME franchise and launching of A-Tredsis a reiteration of our commitment to bring cost effective and convenient modeof financing to our MSME customers. I am sure the launching of A-Treds willprovide a further impetus for growth for SME customers, a key engine of growthof the Indian economy.”
Mr VinayaVarma, CEO of mjunction, said, “For mjunction, A.TREDS is a step in line withits mission of using B2B e-marketplace to bring about efficiency andtransparency. It is a welcome move by RBI and mjunction is happy to be apromoter of A.TREDS.”
Mr. KalyanBasu, MD & CEO of Invoicemart, said, “It is a great honour and privilege tobe a part of this initiative by Govt of India and RBI. We believe that TReDSwill change the landscape of financing of MSMEs in India as well as factoringbusiness. This initiative will benefit all the three participants, theFinancier, Buyer and the MSME Seller. The encouragement from the Buyer, Sellerand Financier community has further strengthened our resolve to make the gamechanging initiative of TReDS a truly successful venture.”
The beliefthat TReDS will benefit buyers was echoed by Mr. J. C. Sharma, Vice Chairman& Managing Director of Sobha Ltd. “Invoicemart will enable us to improvethe financial health of our vendors, which gives us better control overprocurement. Additionally, we will use the platform to streamline our vendorpayments and for better management of our cash flows. It is a great initiative;Sobha Ltd. is proud to be the first buyer to be registered on Invoicemart”, Mr.Sharma said.