New Delhi, Sept. 2 -- India's Trade Receivables Discounting System (TReDS) platforms are looking to widen the pool of capital available for financing micro, small and medium enterprises (MSMEs), as a sharp rise in invoice-financing volumes creates demand for more sources of liquidity.

Receivables Exchange of India Ltd (RXIL) is considering bringing insurance companies and mutual funds onto its platform as secondary investors, allowing existing financiers to sell down some of the risk they take when financing MSME invoices, said Ketan Gaikwad, managing director and chief executive officer of RXIL, in an interview with Mint.

The move could help financiers recycle capital into fresh transactions as TReDS volumes grow, while giving institut...