Receivables Exchange

About Receivables Exchange

Receivables Exchange of India Limited (RXIL) operates as a key financial technology platform within the Indian market, specifically targeting the liquidity challenges faced by Micro, Small, and Medium Enterprises (MSMEs). The company was established as a joint venture between the Small Industries Development Bank of India (SIDBI), India's primary financial institution for MSME promotion and financing, and the National Stock Exchange of India (NSE). Incorporated in February 2016, RXIL received approval from the Reserve Bank of India (RBI) in December 2016 and executed its first transaction in January 2017, marking its position as India's pioneering Trade Receivables Discounting System (TReDS) platform.

The core of RXIL's business is its digital marketplace, the TReDS platform, which facilitates the financing of trade receivables for MSME suppliers. This system connects three key participants: MSME sellers, corporate and government buyers, and various financiers (including banks and NBFC factors). The process involves an MSME uploading an invoice for goods or services supplied to a corporate buyer onto the platform. Once the buyer accepts the invoice, it is put up for auction. Multiple financiers then bid on the invoice, and the MSME can accept the most competitive bid, receiving funds often within 24-48 hours. This model provides MSMEs with quick, collateral-free working capital, effectively converting their unpaid invoices into cash and mitigating the impact of long payment cycles. Revenue is generated by charging a transaction fee to the financiers and corporate buyers.

Under the leadership of Managing Director and CEO Ketan Gaikwad, a seasoned banker with 29 years of experience in transaction banking at institutions like Barclays and Standard Chartered Bank, RXIL has achieved significant growth. The company turned profitable in the first quarter of the 2022-2023 fiscal year. As of July 2025, the platform had surpassed the ₹2 lakh crore (approximately $24 billion) milestone in MSME invoice financing, serving over 44,000 MSMEs and processing more than 8.8 million invoices. The entire process, from MSME onboarding to transaction settlement, is fully digital, integrating with government databases like GSTN for verification. This digital infrastructure has been crucial in streamlining operations and expanding financial inclusion for small businesses across India.