Indiamart Intermesh has acquired a stake in trade receivable discounting system services firm M1xchange for Rs 32.4 crore, the fintech firm said on Monday.
The B2B firm had earlier announced a deal to acquire 7.7 per cent in M1xchange for Rs 32.4 crore and the transaction closes with the fintech firm securing the deal amount.
''M1xchange, India's largest TReDS platform, has secured over Rs 324 million in secondary funding from Indiamart Intermesh Limited, in a deal that provided part exit to SIDBI Venture Capital Limited, an early investor in the company,'' M1xchange said in a statement.
SIDBI Venture was the first institutional investor in the company. ''SIDBI Venture Capital Limited has partly exited with a return on investment of around 7 times, on the investment made in first tranche in 2015,'' the statement said.
Indiamart founder and managing director Dinesh Agarwal said that this investment is in line with the company's long-term objective of offering various fintech solutions, including invoice discounting for its customers bringing ''massive value to our business''.
''TReDS is the future vehicle for India's fund starved sectors attractive for the finance companies and banks as well,'' Agarwal said.
(With PTI inputs)