New Delhi, July 3 -- The trade-receivables discounting platform M1xchange, backed by several venture capital firms such as Beenext and Filter Capital, is looking to expand operations to new geographies to fuel growth.

Trade receivable discounting (TReDS) platforms allow enterprises to manage their cash flows better by allowing them to get funds against receivables.

M1xchange will foray into two more countries soon, according to a senior official.

"We are in the process of finalising the countries. We are very hopeful of doing it [the expansion] this financial year," Sundeep Mohindru, promoter and director, M1 Group told VCCircle in an interaction.

Currently, the New-Delhi based company's overseas operations span Ghana, Nigeria, Botswana and Rwanda. The company serves these regions through local partners.

Earlier this week, M1xchange announced that its supply chain finance arm Mynd Fintech acquired C2FO India Technologies. The latter, which is the Indian arm of Kansas-based C2FO (Pollen Inc), provides early payment solutions for large corporates and small and medium-sized (SME) suppliers.

Mohindru did not disclose the deal value. As a part of the agreement, C2FO India will become a wholly-owned subsidiary of Mynd Fintech, and over a 100 personnel will join the latter.

"By combining C2FO India's strengths with Mynd Fintech's supply chain financing solutions and M1xchange's expertise in TReDS, we will build an ecosystem that delivers high liquidity and efficiency to stakeholders across the corporate, financial, and MSME sector," he said.

Background

Broadly, the M1 group houses the trade receivables discounting (TReDs) platform M1xchange and the GIFT City-based cross-border trade finance entity M1 NXT.

Alongside this, Mynd Fintech provides end-to-end supply chain finance (SCF) and working capital solutions for large enterprises, MSMEs, and their ecosystem partners such as dealers and vendors. It works with a network of banks and non-bank lenders.

Founded in 2017, the flagship entity M1xchange offers businesses an alternative to traditional bank processes for securing working capital. Mynd Fintech, which was set up in 2021, runs the platform UFX, which provides a consolidated supply chain finance tool for all corporate customers. Specifically, customers can access TReDS, dynamic discounting, reverse factoring, export factoring and dealer finance on one interface.

In March 2025, Jindal Stainless and its subsidiary Jindal Stainless Steelway acquired a 9.6% stake in M1xchange for Rs 154 crore (around $18 million) through a mix of primary and secondary transactions. Jindal Stainless said it spent Rs 102.7 crore to acquire a 5.03% stake while the subsidiary paid the remaining amount.

The M1 group's consolidated net profit rose to over Rs 30 crore in FY26 from Rs 12.1 crore a year ago, aided by revenue growth. The topline rose to Rs 167 crore in FY26 from Rs 102 crore a year ago, VCCircle learnt. The group expects to facilitate disbursements worth Rs 2.5 trillion in FY27, fuelled by the latest acquisition. Together, Mynd Fintech and C2FO will make up 24% of the Rs 2 trillion figure.

Growth strategy

The company is targeting a consolidated annual revenue growth of 60%, aided by deepening relationships with MSMEs and their large corporate customers. Besides this, the company may consider additional inorganic opportunities in future to fuel growth.

"As of now, we need to stabilise and ensure that the partnership with C2FO India becomes a win-win for all the stakeholders. We will consider more such inorganic opportunities in due course," he said.

Additionally, the company may raise external capital this financial year to fuel growth. However, Mohindru did not provide any specific details about the funding plan.

"The next fund raise could be a mix of primary and secondary. It is very difficult to comment on the quantum at this stage. We have not really planned it yet," he said.

In May 2025, Mayfield India, the domestic arm of US-based early stage venture capital investor Mayfield sold a part of its stake in M1xchange. In turn, growth-stage focussed investment firm Filter Capital invested $10 million in M1xchange, valuing the company at around Rs 2,100 crore.

Published by HT Digital Content Services with permission from VC Circle.