After finishing the previous year in the red, M1xchange, the digital invoice discounting marketplace supported by Amazon, made a spectacular comeback in FY25. In FY25, the business reported a net profit of Rs 12 crore, while in FY24, it reported a loss of Rs 4 crore.

Key Highlights

• M1xchange, Amazon-backed digital invoice discounting platform, reported a ₹12 crore profit in FY25.
• The platform's operating revenue surged 80.5% to ₹102 crore, driven by transaction and commission charges.

In order to enable the discounting of invoices and bills of exchange on a PAN India basis, M1xchange TReDS, a digital marketplace for selling receivables to banks and NBFCs established with the Reserve Bank of India's (RBI) approval, was founded in 2016.

Strong revenue growth drove the revival. The company's consolidated financial statement, which was obtained from the Registrar of Companies (RoC), shows that its operating revenue for the year increased by 80.5% to Rs 102 crore from Rs 56.5 crore in FY24.

Transaction and commission fees, which increased to Rs 93 crore and accounted for over 91% of the topline, provided the majority of the revenue. During that time, other operating income almost doubled to Rs 6.7 crore, while software development and maintenance fees added an additional Rs 2.3 crore.

Employee benefits accounted for about 70% of total expenditures, making them the biggest contributor in terms of cost. Accordingly, this expense increased 49% from Rs 43 crore in FY24 to Rs 64 crore in FY25, while legal and professional fees increased 40% to Rs 7.4 crore.

M1xchange's overall costs increased by 44% from Rs 63 crore in FY24 to Rs 91 crore in FY25. See TheKredible for a more thorough breakdown of expenses.

The significant increase in revenues made sure that M1xchange ended the year with a profit of Rs 12 crore, even with the increased expense load. The company's EBITDA margin was 17.65% and its ROCE was 13.59%.

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In FY25, the Gurugram-based company reported current assets of Rs 95 crore, which included cash and bank balances of Rs 48 crore. Scaling profits are inevitable for a bill discounting platform, but the figures should get even better as staff costs level off.

Amazon, SIDBI, Beenext, Mayfield, and IndiaMart are the primary investors in M1xchange, which has raised $56 million in funding so far, according to TheKredible. Thirty-one percent of the business is owned by Sundeep Mohindru, the founder and CEO.