C2treds marks first year of business on TReDS, with MonetaGo solution

C2treds has completed its inaugural year of operations on India’s Trade Receivables Discounting System (TReDS), marking a significant step in scaling secure receivables financing. TReDS, integrated with the MonetaGo Secure Financing system, enables real-time validation to mitigate the risk of duplicate invoice financing and strengthen the integrity of trade finance workflows.

C2treds, a wholly owned subsidiary of C2FO, the world’s leading on-demand working capital platform, received Reserve Bank of India (RBI) approval to commence operations under the Trade Receivables Discounting System (TReDS) in April 2024. A brainchild of the RBI, TReDS enables Indian micro small and medium enterprises (MSMEs) to obtain financing for their trade receivables for their sales to large Indian corporate customers.

India’s TReDS total transaction value throughput has again seen significant growth, posting a record USD$23.6bn in the most recent financial year. This represents a 134 per cent CAGR year on year since its inception in 2018.

“The first year success of C2treds is a testament to the principles we endeavoured to achieve in setting out to revolutionise the trade financing landscape in India by delivering an unparalleled experience on our platform, with a paramount focus on security”, said Neha Bahadur, GM & Head of Business at C2treds. The critical layer of fraud prevention provided by MonetaGo’s technology enabled us to transact with confidence.”

Since 2018, MonetaGo has been providing the TReDS platforms the service of deduplication, which allows the exchanges to identify whether an invoice has already been financed, whilst preserving customer confidentiality.

Kalyan Basu, Managing Director India at MonetaGo, said “Congratulations to the C2treds team on their first-year success in TReDS operations. The year-on-year growth of TReDS is testament to the vital role fraud detection and prevention plays in supporting the Indian trade and receivables markets.”

Basu, with over 5 decades of experience and expertise in the Indian banking and finance industry, has been a key voice and supporter of the receivables and invoice discounting market, including TReDS, to better safeguard data and provide duplicate financing checks in a privacy-preserving manner.

“The continued expansion and adoption of the MonetaGo system underlines the significant progress made in delivering on our commitments to reduce risks in trade finance through the detection and prevention of fraud,” said Neil Shonhard, CEO of MonetaGo.

C2treds is the most recent platform approved by the Reserve Bank of India to offer the TReDS service.