The Role of TReDS Is Set to Go Up Significantly

Mixchange, the Trade Receivables e-Discounting System (TReDS) platform for invoice discounting, in FY25 recorded business of over ₹78,000 crore, up 100 per cent from the previous year. Higher US tariffs are expected to impact micro, small and medium enterprises (MSMEs); and TReDS' role in financing the sector will become more critical. Sundeep Mohindru, founder-director of Mixchange, interacted with Raghu Mohan via email on the issues facing MSMEs. Edited excerpts:

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What do you think will be the impact of the higher tariff regime on MSMEs?

This will reshape trade flows and cost structures, and MSMEs will feel the impact first. For many, it will mean higher input costs, tighter margins, and—particularly in the export-driven sectors—a potential drop in orders. The bigger challenge is liquidity, as stretched cash cycles will make access to affordable working capital critical. At Mixchange, we see this as a moment to step up our mission—helping MSMEs unlock capital quickly and cost-effectively on our TReDS platform. By enabling invoice discounting in under 24 hours at competitive rates, we can help MSMEs manage rising raw material costs, navigate market shifts, and sustain growth. The government's moves to lower turnover thresholds and mandate TReDS registration will bring thousands of more companies into its fold, while innovations like small-to-small (S2S) financing and cross-border invoice discounting through GIFT City's ITFS (International Trade Finance Services) platform will extend this safety net deeper into Tier-II and Tier-III markets. Higher tariffs will test MSMEs' resilience. Our job is to ensure they have the financial agility to not only withstand the shocks, but also compete stronger in the global markets.

And what of the S2S business initiative launched by your platform?