KredX gets RBI nod to launch TReDS platform

Supply chain finance platform KredX on Thursday said it has received the Reserve Bank of India's (RBI's) final approval to commercially launch its Trade Receivables Discounting System (TReDS) platform under the brand name DTX (Domestic Trade Exchange).

With this approval, KredX became the fifth RBI-regulated TReDS platform in India, marking a pivotal step in its mission to transform supply chain financing in the country, the company said in a statement.

The TReDS platform is a government-mandated initiative aimed at addressing the challenge of delayed payments and working capital gaps in the micro, small, and medium enterprise (MSME) sector, it said.

By enabling the discounting of trade receivables on an electronic platform, TReDS fosters transparency, ensures timely payments, and improves liquidity for MSMEs, it said, adding that this is critical in a sector where cash flow disruptions often hinder growth.

The launch of DTX by KredX is expected to accelerate compliance, drive adoption, and contribute significantly to building sustainable supply chains, it said.

Manish Kumar, CEO & Co-founder of KredX, said, "With recent mandates requiring companies with a turnover of Rs 250 crore or more to register with TReDS, our platform, DTX, is strategically positioned to drive compliance and accelerate adoption across the country."

DTX leverages KredX's advanced technology infrastructure to offer a seamless and user-friendly experience tailored for the MSME sector, it added.