Axis Bank has launched a digital invoice discounting platform ‘Invoicemart’, for the Micro Small and Medium Enterprises (MSMEs) announcing completion of its first set of transactions here. Invoicemart is a platform inspired by Reserve Bank of India’s TREDS (Trade Receivables Discounting System), in a joint venture between Axis Bank and mjunstion, an e-commerce company in the country.
Speaking on the occasion, V.Srinivasan Deputy Managing Director Axis Bank said, “Axis Bank has got a very strong MSME franchise and launching of TREDS is a reiteration of our commitment to bring cost effective and convenient mode of financing to our MSME customers. I am sure the launching of TREDS will provide a further impetus for growth for SME customers, a key engine of growth of the Indian economy.”
The sale of invoices will happen by way of a transparent bidding process involving multiple financiers, which will facilitate efficient price discovery, thus lowering cost of funds for MSMEs. Funds disbursed through TREDS will also qualify for priority sector lending benefits for the banks.
CEO of mjunction who was also present at the occasion said, “For mjunction, TREDS is a step in line with its mission of using B2B e-marketplace to bring about efficiency and transparency. It is a welcome move by RBI and mjunction is happy to be its promoter.’ 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 the platform’s operations