Canara Bank and KredX team up to accelerate digital trade finance for businesses in India through the DTX platform.
In a significant move to enhance financial inclusivity for Micro, Small, and Medium Enterprises (MSMEs) in India, KredX, a fintech company backed by marquee investors including Tiger Global, Sequoia Capital India, and Prime Venture Partners, has partnered with Canara Bank.
Canara Bank, a leading institution among Indian banks and founded in July 1906 by Shri Ammembal Subba Rai Pai, brings a strong public sector presence and an extensive network of branches across the country to the partnership. This collaboration aims to bridge the massive ₹30 lakh crore MSME credit gap.
KredX's platform offerings include DTX (Domestic Trade Exchange), GTX (Global Trade Exchange), and CMS (AI-powered Cash Management Solutions). The DTX platform, approved under the Reserve Bank of India's (RBI) TReDS framework and aligning with the Government of India's mandate for companies with a turnover exceeding Rs. 250 crore to onboard TReDS and integrate with the GSTN, provides businesses with access to the lowest cost of finance, an intuitive user experience, and seamless execution.
This partnership leverages Canara Bank’s wide reach and KredX's digital infrastructure to extend finance to underserved MSMEs. By offering a collateral-free and low-cost working capital via digital trade receivable discounting, the partnership tackles systemic issues like delayed payments and high borrowing costs, improving MSMEs' liquidity.
KredX's DTX platform offers a digital-first solution for end-to-end trade finance, connected to 50+ financiers and designed to enable bidding on trade receivables. This partnership addresses key MSME challenges such as delayed payments, high borrowing costs, and the need for collateral, thereby fostering a more robust, accessible, and inclusive supply chain finance ecosystem that aligns with the government’s financial inclusion goals and empowers businesses across sectors and scales to thrive.
As part of its efforts to support MSMEs, KredX is engaging with State Governments to raise awareness around TReDS and provide TReDS onboarding assistance. The company aims to achieve Rs. 15,000 crore in disbursals and empower 15,000 MSMEs by the end of this fiscal year.
DTX enables suppliers to access working capital instantly, while allowing buyers to optimise cash flows and build more resilient supply chains. KredX serves MSME suppliers as well as large corporate anchors.
This partnership represents a significant step toward integrating MSMEs into formal financial networks through modern technology and public sector support. It is a testament to KredX's decade-long commitment to enabling businesses to unlock working capital and optimize cash flows. By broadening the reach of digital trade receivable discounting through the RBI-licensed TReDS platform, Domestic Trade Exchange (DTX), the partnership is set to revolutionize the way MSMEs access finance in India.
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[3] KredX partners with Canara Bank to boost MSME financial inclusion. (2023, March 21). Mint. Retrieved April 10, 2023, from https://www.livemint.com/companies/news/kredx-partners-with-canara-bank-to-boost-msme-financial-inclusion-11679566927984.html
[4] KredX partners with Canara Bank to boost MSME financial inclusion. (2023, March 21). The Economic Times. Retrieved April 10, 2023, from https://economictimes.indiatimes.com/news/economy/finance/kredx-partners-with-canara-bank-to-boost-msme-financial-inclusion/articleshow/98954962.cms
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- This collaboration between KredX and Canara Bank, driven by innovation in technology, aims to tackle systemic issues in financing, such as delayed payments and high borrowing costs, ultimately fostering a more inclusive business environment for Micro, Small, and Medium Enterprises (MSMEs) in India.
- The digital infrastructure of KredX, coupled with Canara Bank's widespread network, offers a unique solution for extending low-cost finance to underserved MSMEs, signifying the integration of technology and traditional finance in the modernization of business practices.
- The partnership between KredX and Canara Bank represents a significant stride in integrating MSMEs into formal financial networks, harnessing the power of technology, innovation, and public sector support to revolutionize India's business landscape.
