Digital trade finance collaboration strengthened: KredX's DTX Platform teams up with Canara Bank to boost online trade finance services for Indian corporations.
Canara Bank, a leading institution among Indian banks, has partnered with fintech company KredX to enhance financial inclusivity for Micro, Small, and Medium Enterprises (MSMEs) in India. This collaboration aims to bridge the substantial Rs. 30 lakh crore credit gap faced by MSMEs by providing faster, more affordable, and collateral-free financing options.
Founded in July 1906 by Shri Ammembal Subba Rao Pai, Canara Bank boasts a network of 9,518 branches and 12,118 ATMs/Recyclers across all Indian states and Union Territories. This extensive public sector presence complements KredX's advanced technology-driven platform, enabling a more accessible and inclusive supply chain finance ecosystem.
KredX, backed by marquee investors including Tiger Global, Sequoia Capital India, and Prime Venture Partners, offers a full stack of digital finance solutions for modern supply chains. Their offerings include DTX, GTX, and CMS, designed to unlock working capital and optimize cash flows for businesses.
The partnership's centrepiece is KredX's RBI-licensed TReDS platform, Domestic Trade Exchange (DTX). This platform offers a digital-first solution for end-to-end trade finance, approved under the RBI's TReDS framework. DTX is connected to 50+ financiers and designed to enable bidding on trade receivables, providing businesses with access to the lowest cost of finance.
The partnership aims to support MSMEs by raising awareness around TReDS and providing TReDS onboarding assistance. KredX serves MSME suppliers as well as large corporate anchors, ensuring a comprehensive suite of solutions including early payments, accounts payable and receivable financing, and cash flow automation.
The collaboration also benefits Canara Bank, as it broadens the reach of digital trade receivable discounting through KredX's RBI-licensed TReDS platform, DTX. This partnership will help Canara Bank's customers, particularly MSMEs, to access working capital instantly and allow buyers to optimize cash flows, building more resilient supply chains.
In summary, the partnership leverages Canara Bank’s reach and KredX’s technology to substantially improve MSMEs' ability to obtain working capital efficiently and affordably, thereby promoting deeper financial inclusion in India’s large and diverse MSME sector. KredX's goal is to achieve Rs. 15,000 crore in disbursals and empower 15,000 MSMEs by the end of this fiscal year. This collaboration is a significant step towards fostering financial inclusion and supporting small businesses to thrive in India.
[1] Press Release: Canara Bank and KredX Partner to Boost Financial Inclusion for India's MSMEs, www.canarabank.com [2] KredX Partners with Canara Bank to Expand Digital Trade Receivable Discounting, www.kredx.com
- The partnership between Canara Bank and fintech company KredX represents an innovative approach to infrastructure development, as it utilizes technology to bridge the substantial credit gap faced by Micro, Small, and Medium Enterprises (MSMEs) in India.
- Canara Bank's collaboration with KredX not only provides faster, more affordable, and collateral-free financing options for MSMEs but also expands the reach of digital trade receivable discounting through KredX's RBI-licensed TReDS platform, DTX, enhancing the resilience of supply chains.
- In an effort to foster financial inclusion and support small businesses, KredX aims to achieve Rs. 15,000 crore in disbursals and empower 15,000 MSMEs by the end of this fiscal year, leveraging the extensive infrastructure of Canara Bank and its own advanced technology platform.
