MUMBAI: Invoicemart, India’s largest Trade Receivables Discounting System (TReDS) platform has signed a Memorandum of Understanding (MoU) with FaMe TN. The MoU was signed on Thursday, at the Regional MSME meet, Tirupur, in the presence of Chief Minister MK Stalin and the Industries Commissioner.
FaMe TN, under the MSME Department, TN, is setting up an exclusive ERP platform named TN TReDS for the purpose of facilitating the smooth payment processes on TReDS Platform by its government entities. All government entities, departments, units of State of Tamil Nadu along with their MSMEs can now register on Invoicemart to get the MSME invoices financed.
Over the last two years and post-Covid-19, Invoicemart has seen significant adoption of TReDS by corporates and their MSMEs. Financing of invoices has grown 2x times in FY22 compared to FY21.
There is already a mandatory requirement, as per a government notification, for CPSEs, PSUs and corporates with turnover more than Rs 500 cr to register on TReDS. Now, active discussions are on with several states, for registering on Invoicemart, to enable MSMEs supplying to the State government to avail the benefits of TReDS.
Tamil Nadu has several manufacturing hubs and also has huge a service industry. There are 49.5 lakh* MSMEs in the state, contributing significantly to the revenues. Invoicemart has already got MSME vendors, from across 450 plus postal codes of TN, registered on the platform.
In FY23, Invoicemart has reached a record throughput of ₹36000+ cr and is now seeing a month-on-month throughput of ₹ 2000+ cr. With state governments coming on board, TReDS financing volumes for MSME invoices is expected to shoot up tremendously.
“This is an important milestone for TReDS and Invoicemart. The potential and connect that state governments have with their MSMEs can help build volumes quickly and enable deeper penetration in the segment. We are happy that TN is leading the way and are confident that more states are going to register soon," said Sankaran, MD-CEO, TReDS.