Amazon-backed M1xchange turns profitable in FY25; revenue grows 80%

M1xchange, the Amazon-backed digital invoice discounting marketplace, staged a remarkable turnaround in FY25 by swinging to profitability after ending the previous year in losses. The company reported a net profit of Rs 12 crore in FY25, compared to a loss of Rs 4 crore in FY24.

Founded in 2016, M1xchange TReDS is a digital marketplace to sell receivables to banks/NBFCs set up under the approval of the Reserve Bank of India (RBI) to facilitate the discounting of invoices and bills of exchange on a PAN India basis.

The revival was powered by strong revenue growth. The company’s operating revenue for the year grew 80.5% to Rs 102 crore from Rs 56.5 crore in FY24, according to its consolidated financial statement sourced from the Registrar of Companies (RoC).

The bulk of the revenue came from transaction and commission charges, which surged to Rs 93 crore, accounting for more than 91% of the topline. Software development and maintenance fees added another Rs 2.3 crore, while other operating income nearly doubled to Rs 6.7 crore during the period.

From a cost perspective, employee benefits were the largest contributor, making up around 70% of overall spend. To the tune of scale, this cost rose 49% to Rs 64 crore in FY25 from Rs 43 crore in FY24, while legal and professional charges grew 40% to Rs 7.4 crore. 

Overall, M1xchange’s total expenses rose to Rs 91 crore in FY25, a 44% increase from Rs 63 crore in FY24. For a more detailed expense breakup, refer to TheKredible.

Despite the heavier expense load, the sharp rise in revenues ensured that M1xchange closed the year at Rs 12 crore profit. The company’s ROCE and EBITDA margin stood at 13.59% and 17.65% respectively.

The Gurugram-based company reported current assets worth Rs 95 crore in FY25, including Rs 48 crore in cash and bank balances.

While profits with scale are bound to follow for a bill discounting platform, the numbers should improve further as employee costs should also stabilise. 

According to TheKredible, M1xchange has raised a total of $56 million of funding to date, having Amazon, SIDBI, Beenext, Mayfield, and IndiaMart as its lead investors. The company’s founder and CEO, Sundeep Mohindru, owns 31% of the company.