M1xchange, an India-based online exchange for receivables held by micro-, small and medium-sized enterprises (MSMEs), recently raised USD 10 million in a funding round led by US-based retailer and technology company Amazon, with participation from venture capital firms Beenext of Singapore and current US-based investor Mayfield. M1xchange’s other investor is SIDBI Venture Capital, an affiliate of the Small Industries Development Bank of India (SIDBI).
Launched by India-based Mynd Integrated Solutions in 2017, M1xchange “enables MSME to secure finances by converting their trade receivables into liquid funds, on without recourse basis.” M1xchange CEO Sundeep Mohinduru stated, “Over the last decade, India has gone through a sea change in the enormous number of MSMEs now selling their wares online. Our approach to supply chain finance will benefit the large ecosystem of vendors built by Amazon in India….” M1xchange is active in 352 cities.
As of June 2020, Amazon reported quarterly net income of USD 5.2 billion on net sales of USD 89 billion.
By Harriet Ritchie, Research Associate
Sources and Additional Resources
M1xchange press release
https://www.m1xchange.com/M1xchange-raises-dollar-10-million-led-by-Amazon.php
M1xchange homepage
https://www.m1xchange.com/
Amazon homepage
https://www.amazon.com/
Amazon June 2020 financials
https://s2.q4cdn.com/299287126/files/doc_financials/2020/q2/Q2-2020-Amazon-Earnings-Release.pdf
Mynd Integrated Solutions homepage
https://www.myndsolution.com/
Beenext homepage
https://www.beenext.com/
Mayfield homepage
https://www.mayfield.com/
SIDBI Venture Capital homepage
https://www.sidbiventure.co.in/
SIDBI homepage
https://www.sidbi.in/
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