India’s Open Agri Network, Samunnati, has successfully onboarded its first Farmer Producer Organisation (FPO) on TReDS, a digital platform that facilitates the financing and discounting of trade receivables for Micro, Small, and Medium Enterprises (MSMEs).
This marks the first time an FPO has benefited from invoice discounting in the context of FPO financing, with transactions of discounting invoices worth Rs. 3.5 Crores completed through Invoicemart on the platform. Samunnati has been providing all-around support to the FPO, including customized financial solutions, training and capability building, and market linkage.
FPOS under TReDS: Samunnati powers invoice discounting transactions of Rs.3.5 crores
TReDS was initiated by the Reserve Bank of India to regulate trade receivables among MSMEs, large corporates, and financiers. It resolves one of the most critical issues for small businesses – managing cashflows for business continuity.
The platform allows for receivables that are due from corporates, Government Departments, Public Sector Undertakings (PSUs), and other buyers to be discounted. Under TReDS, MSMEs get a transparent bidding system, as the settlement happens via NPCI, providing a seamless experience for all participants.
Samunnati has become one of the most active participants on the platform by onboarding more than 75+ new suppliers, mainly MSMEs, to date, and facilitating transactions worth Rs. 100 Crores through TReDS in the year 2021-22. The company is proud to be at the forefront of enabling FPOs and MSMEs in the agriculture sector to benefit from TReDS and Priority Sector Lending.
