- Gujarat is home to some 23.72 lakh MSMEs registered on the Udyam platform, these MSMEs contribute to 8% of national GDP.
- Gujarat government has mandated that 25% of annual procurement should come from micro and small enterprises (MSEs).

To resolve one of the major issues with Micro, Small and Medium Enterprises (MSMEs), easy financing, the government of Gujarat has partnered with M1xchange, India’s leading Trade Receivables Discounting System (TReDS) platform, and its subsidiaries Mynd Fintech and M1 NXT. As per the Memorandum of Understanding (MoU) signed between Sandip Sagale, IAS, Commissioner of MSMEs, Government of Gujarat, and Amit Sachdev, Co-founder & Chief Operating Officer, M1xchange, this partnership will open a whole new avenue of financing for MSMEs in the State.

As per data, one of the most progressive states of the country, Gujarat is home to some 23.72 lakh MSMEs registered on the Udyam platform. These MSMEs contribute to 8% of national GDP. At the same time, the Gujarat government has mandated that 25% of annual procurement should come from micro and small enterprises (MSEs). This partnership reaffirms state government’s acknowledgement and commitment towards growth of MSME sector in the State and its contribution to the national GDP. This initiative is also expected to bolster the financial health of MSMEs which are keen to drive growth and business continuity in the state.

This MoU is expected to enable easy, collateral-free working capital access to Gujarat-based MSMEs that are supplying to state government departments, PSUs, and private enterprises. The initiative was also supported by R.D. Barhatt, Joint Commissioner of Industries (MSME–D), Government of Gujarat, and facilitated by SIDBI–KPMG (PMU) under the leadership of Neeraj Sharma and Ayush Goel.

Under this strategic partnership, M1xchange and the state government aims to boost the MSME ecosystem in the region by enabling early payment for MSMEs working for Government departments and PSUs and Private Companies based in Gujarat at very competitive prices. As part of this collaboration, an extensive awareness program will be launched jointly by the Government of Gujarat and M1xchange across key industrial clusters in the state, to onboard eligible MSMEs and educate them on the benefits of digital invoice discounting.

Amit Sachdev, Co-founder & COO, M1xchange said on the occasion, “This partnership will play a big role in addressing credit gaps faced by the MSME sector, giving them an opportunity to easily avail of receivable financing through TReDS. Our joint efforts aim to ensure that MSMEs receive timely payments, thereby improving their cash flow and fostering growth. Together, we are committed to reform the financial landscape for MSMEs in the state”

Speaking about the partnership, Sandip Sagale said, “MSMEs form the backbone of Gujarat’s economy, employing over 1 crore people and contributing significantly to the state’s industrial growth. With Gujarat accounting for nearly 8% of India’s GDP, it is imperative that we strengthen the financial ecosystem supporting our MSMEs.

This partnership marks a significant step in enhancing access to formal credit for MSMEs working with the Government of Gujarat and within the state by leveraging digital invoice discounting mechanisms through TReDS platforms. It will enable faster, easier, and collateral-free access to working capital, ensuring timely payments, improved cash flow, and reduced reliance on informal credit channels. We are confident that this initiative will empower our MSMEs, drive business sustainability, and further accelerate Gujarat’s economic momentum.”

M1xchange claims to have facilitated more than INR 1,75,000 crores worth of invoice discounting so far with a 100 per cent year-on-year growth and has built a strong base of over 50,000 MSMEs and over 2800 corporates with over 66+ Banks/NBFC. The company has also signed MoUs with many state governments including Goa, Haryana, Madhya Pradesh, Maharashtra, and Tamil Nadu to enhance liquidity for MSMEs at affordable rates.