Receivables Exchange of India Limited

In their own words

Receivables Exchange of India Ltd. (RXIL) is jointly promoted by Small Industries Development Bank of India (SIDBI) and National Stock Exchange of India Ltd. (NSE), to operate TReDS platform as per extant RBI TReDS guidelines. Trade Receivables Discounting System (TReDS) is a digital platform to facilitate MSMEs to auction their trade receivables at competitive rate through transparent online bidding process by multiple Financiers (Banks and Non Banking Financial Company - Factors). Management Team Ketan Gaikwad MD & CEO - A seasoned banker with over 25 years of experience in Banking & Finance industry, in global banks like Standard Chartered, Barclays etc. Kailashkumar Varodia CFO - A finance professional with over 17 years of experience in factoring and banking services. Customer Problem Despite of the importance of the MSMEs in Indian economic growth, they do not get required support from concerned Government Departments, Banks, Institutions etc. The key objectives for setting up TReDS: • Transformation of MSME receivables ecosystem to accelerate collections • Creation of institutional structure to facilitate receivable financing for MSMEs • Provide access to competitive financing rates to MSMEs Products & Services Trade Receivables Discounting System facilitates financing of invoices/bills of MSMEs drawn on corporate and other buyers, including the Government Departments and PSUs, by way of discounting by financiers. The participants in TReDS work together for facilitating, accepting, discounting, and settling invoices. Target Market The concept of Trade Receivables Discounting System (TReDS) has been proposed by the Reserve Bank of India to revolutionize the MSME receivables mechanism. It helps MSME sellers, corporate buyers, and financiers (banks and NBFCs) to be linked on a common platform. The main idea behind this is to safeguard the interest of the MSMEs, create transparency and build an ecosystem for their growth. Business Model Revenue from all transactions taking place on the TReDS are realized through a nominal fee as per the below structure - 1. Registration fee - for Sellers, Buyers & Financiers 2. Transaction charges - Fixed, variable (on volumes) 3. Annual fee - for facility renewal / maintenance The transactions charges may be levied by RXIL on following participants: • MSME Sellers • Buyers (Corporates, Govt. Departments and PSUs) • Financiers Customer Segments The TReDS platform allows different participants for facilitating, uploading, accepting, discounting, trading and settlement of the invoices/ bills of MSMEs as observing the below following. • MSME Suppliers - Supplying goods or services to Buyers • Buyers - Corporates, Government Departments, Public Sector Units and Others • Financier - Banks, Non-banking Financial Company – Factors Sales & Marketing Strategy Considering the diversity of customer segments, the go-to-market strategy has been different for each segment. Sellers - Creating mass awareness through news, social media. Partnering with government bodies, Banks, seller associations & forums to maximize inclusion and reach. All Buyers and Financiers, have been directed Reserve Bank of India along with the Ministry of Finance and Ministry of Corporate Affairs to facilitate and promote TReDS. Competition As of now, the Reserve Bank of India has licensed three entities to participate on the TReDS platform: 1. NSE Strategic Investment Corporation (NSICL) and Small Industries Development Bank of India (SIDBI) 2. Axis Bank - Invoicemart 3. Mynd Solutions which runs M1Exchange. These licensed entities are expected to develop the platform and allow the MSMEs, corporate buyers and banks or NBFCs, to come together to facilitate the process. RXIL's Competitive Advantage 1. Promoter Credentials - RXIL is promoted by institutions with a proven track record and standing in their respective areas. 2. The IT infrastructure for RXIL is managed by National Stock Exchange and are subject to stringent norms and compliance. 3. RXIL since inception has been closely engaged with Reserve Bank of India and Department of Financial Services in propagating the concept of TReDS through regular workshops, forums and meetings. Join RXIL today for uncommon results.

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