C2FO Factoring Solutions Private Limited is the newest entity of C2FO, a global financial technology platform, to receive in-principle approval from the RBI to set up a TReDS platform in India. This is a welcome move as it will allow C2FO to analyse its vast network of 50,000+ MSME suppliers and enterprises and develop the TReDS platform further.
C2FO, being a global platform for working capital solutions, caters to over 10 Lakh businesses spread across more than 160 countries. In India, the company caters to over 2 Lakh businesses, many of which are MSMEs. MSMEs contribute to over 30% of the country’s GDP and have an employment potential of more than 110 million jobs (Ministry of MSME Annual Report 2020-21). However, a majority of MSMEs continue to struggle for survival, mainly because of a lack of timely and affordable access to credit facilities. This is one of the primary reasons why the RBI launched TReDS in July 2014. Currently, there are three operating TReDS platforms in India, namely Invoicemart, M1xchange and RXIL, that have been running since 2017.
C2FO plans to leverage its reach and understanding of supplier constraints to build a separate TReDS entity and enhance the working capital needs of MSME businesses, which would also include the MSMEs that are currently on its platform. In addition, the company will continue to bring its globally renowned technology solutions to India, to address the working capital needs of millions of businesses.
Welcoming this move, Ms Basant Kaur, Country Head, C2FO India, said "C2FO’s mission is to provide working capital to every business that needs it. We express heartfelt gratitude and thanks to the Reserve Bank of India, the Ministry of MSME, our customers, investors, India and global teams, and the many well-wishers and stakeholders who have supported us over the years. We look forward to using this opportunity to unlock value for MSMEs and contribute to India’s rapid economic growth."
About C2FO
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. C2FO’s mission is to ensure that every business has the capital needed to thrive and has delivered more than $220 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 www.C2FO.com.