Collaboration between KredX's DTX Platform and Canara Bank to Enhance Digital Trade Financing for Indian Corporations
The strategic partnership between KredX and Canara Bank is designed to enhance digital trade finance and improve financial inclusion for Micro, Small, and Medium Enterprises (MSMEs) in India. This collaboration focuses on leveraging KredX’s Trade Receivables Discounting System (TReDS) platform, branded as DTX, to provide affordable, collateral-free working capital solutions by enabling faster invoice discounting.
The aim of this partnership is to reduce the significant ₹30 lakh crore credit gap faced by MSMEs by facilitating easier access to liquidity through digital channels. By integrating Canara Bank’s extensive network with KredX’s digital platform, MSMEs can obtain timely financing against their receivables without traditional collateral requirements, which is a crucial factor for smaller businesses typically underserved by formal banking.
Key impacts on MSMEs include:
- Improved liquidity and cash flow management due to quicker conversion of receivables into working capital.
- Access to collateral-free, affordable credit, reducing dependency on expensive informal financing.
- Promotion of digital finance adoption among MSMEs, enhancing transparency and efficiency in trade receivables discounting.
- Alignment with the Reserve Bank of India’s broader vision to expand digital financing in the MSME sector, which supports economic growth and employment.
KredX’s DTX platform offers a digital-first solution for end-to-end trade finance, connected to 50+ financiers and designed to enable bidding on trade receivables. The partnership will broaden the reach of digital trade receivable discounting through KredX’s RBI-licensed TReDS platform, Domestic Trade Exchange (DTX).
Canara Bank, celebrating 100 years of service within the Indian banking industry, brings a strong public sector presence and legacy to the partnership, with a robust network of branches across the country. KredX, India's leading integrated supply chain finance platform, has been enabling businesses to unlock working capital and optimize cash flows for a decade. The company is backed by marquee investors including Tiger Global, Sequoia Capital India, and Prime Venture Partners.
In addition to the partnership with Canara Bank, KredX is engaging with State Governments to support MSMEs by raising awareness around TReDS and providing TReDS onboarding assistance. This will revolutionize MSME onboarding, reduce friction, improve data accuracy, and enable KredX to provide more tailored solutions to a wider base of MSMEs nationwide.
The partnership between KredX and Canara Bank strengthens MSME financing infrastructure by combining technological innovation with banking support, fostering greater financial inclusion and enabling MSMEs to scale operations more effectively in India’s evolving business ecosystem. The collaboration aligns with the Government of India's mandate for companies with a turnover exceeding Rs. 250 crore to onboard TReDS and integrate with the GSTN.
- The partnership between KredX and Canara Bank, by leveraging KredX’s Trade Receivables Discounting System (TReDS) platform, aims to bring about a significant change in the digital trade finance landscape in India, particularly for Micro, Small, and Medium Enterprises (MSMEs).
- By integrating Canara Bank’s extensive network with KredX’s digital platform, smaller businesses can now access affordable, collateral-free working capital solutions, thereby reducing their reliance on expensive informal financing.
- This strategic alliance is expected to contribute to the Reserve Bank of India’s broader vision of expanding digital financing in the MSME sector, ultimately promoting economic growth and employment opportunities.
- In an effort to extend its reach and support a wider base of MSMEs nationwide, KredX is also collaborating with State Governments, raising awareness around TReDS and providing onboarding assistance, which will revolutionize MSME onboarding and facilitate more tailored solutions.
