India’s Largest Small-Business Lender SIDBI onboards C2treds to Boost Liquidity for MSMEs

SIDBI becomes C2FO’s latest financier to C2treds, the company’s first national funding platform

New Delhi, 30, July 2024 — C2FO, the world’s leading on-demand working capital platform, announced that the Small Industries Development Bank of India (SIDBI) is the latest financier to join C2treds, its TReDS platform. Through this strategic collaboration, C2treds aims to enhance liquidity for MSMEs at competitive interest rates.

SIDBI is the principal financial institution engaged in promoting, financing, and developing Micro, Small, and Medium Enterprises (MSMEs) in India. C2treds is C2FO’s first national funding platform that expands working capital access to MSMEs. C2FO is the only fintech platform of scale in India offering both Early Pay (dynamic discounting) and TReDS functionalities.

C2treds operates under the Trade Receivables Discounting System (TReDS) initiative which enables the discounting of invoices and is regulated by the Reserve Bank of India (RBI) to support the MSME sector in India. The platform offers MSMEs early liquidity within 24 hours through an online bidding process, utilizing a fully digital, end-to-end solution.

“As the apex institution for the promotion and development of MSMEs, SIDBI is fully committed to increasing the flow of credit to MSMEs. TReDS has become an effective tool for the prompt realization of MSMEs’ receivables and SIDBI is onboarded on all operational TreDS platforms. We are confident that C2FO will leverage its network to bring in more buyers and MSMEs on its TreDS platform to meet the Government objectives to mitigate delays in payments to MSME suppliers,” said Prakash Kumar, DMD, SIDBI.

“SIDBI joining the C2treds platform will significantly amplify our efforts to support the growth of MSMEs, which are the employment engines of our country,” said Basant Kaur, Country Head of C2FO India. “By providing MSMEs with the financial support they need to thrive, we are not only unlocking their potential but also driving the economic growth of the nation. We are looking forward to partnering with SIDBI on this vital endeavour.”

The MSME sector is crucial for India’s economic growth and sustainability, being the second-largest employer after agriculture. The Government of India is committed to supporting MSMEs as evidenced by several initiatives announced in the Union Budget 2024, including reducing the turnover threshold for mandatory onboarding of buyers on the TReDS platform from ₹500 crore to ₹250 crore.

About C2treds & C2FO

C2treds is an RBI-approved TReDS platform by C2FO, the world’s on-demand working capital platform. We understand the pivotal role Indian MSMEs play in India’s growth story. The MSME sector contributes close to 30% of the country’s GDP yet faces critical challenges such as restrictive debt cycles, high interest rates, and delayed payments, all of which impede business cash flow. With around 50,000+  Indian MSMEs as part of C2FO’s India network, C2treds is poised to overcome these barriers for a significant number of MSMEs. To learn more, visit C2treds.com.

C2FO is the world’s on-demand working capital platform, providing fast, flexible and equitable access to low-cost capital to nearly 2 million businesses worldwide. Using patented Name Your Rate® technology and a suite of working capital solutions, companies can get paid sooner by the world’s largest enterprises — unlocking billions in risk-free capital. With a mission of ensuring that every business has the capital needed to thrive, C2FO has delivered more than $350+ billion in funding around the world. Founded in 2008 and headquartered in Kansas City, USA, with offices around the globe, C2FO is working to build a better, more inclusive financial system every day. To learn more, visit C2FO.com