Archive: June 1, 2024

News

M1xchange Surpasses INR 1,00,000 Crore in Invoice Discounting Throughput

Jun 1, 2024 by Mansi Praharaj 0 Comments #EY report, #M1xchange, #Sundeep Mohindru, #TReDS

New Delhi, 1st June, 2024: M1xchange, India’s leading invoice discounting platform has reached a significant milestone by surpassing ₹1,00,000 crore in throughput value. This highlights the platform’s crucial role in transforming the landscape of alternative financing for small businesses across the country.

Sundeep Mohindru, Promoter & Director, M1xchange - 1

M1xhange, India’s leading TReDS (trade receivables discounting system) platform is the first to successfully expand the scope of TReDS through Small-to-Small (S2S) financing. This initiative effectively bridges the credit gap and integrates tier 2 and tier 3 MSMEs into the formal credit ecosystem, significantly contributing to their growth and sustainability. S2S financing has broadened the scope of TReDS platform, enabling more banks and NBFCs to engage with underserved MSMEs, which fosters economic development at a grassroots level.

Invoice discounting via TReDS experienced a significant upsurge in 2023 driven by adoption among MSMEs, corporates, and banks. Sundeep Mohindru, Promoter & Director, M1xchange, said, “From the very beginning, our vision was to transform access to working capital through digitization and innovation. This milestone is significant, but it merely scratches the surface of the vast opportunities ahead. By facilitating credit through competitive interest rates, prompt disbursals, and streamlined processes, we are creating immense opportunities to boost MSME growth in India.”

According to an EY report, the MSME sector in India has a staggering credit gap of $530 billion. Among the 64 million MSMEs in the country, only about 14% have access to formal credit. M1xchange aims to bridge this gap by reducing financing costs for both corporate buyers and MSME sellers.

Showcasing a consistent 100% year-on-year growth, M1xchange discounted invoices worth INR 43,000 crores in FY24 compared to INR 23,100 crores in the previous fiscal. This impressive growth in transaction volume is attributed to the increasing acceptance and understanding of TReDS among businesses. The platform has witnessed 100% month-on-month increase in registrations from corporates and MSMEs alike, recognizing the efficiency and cost-effectiveness of TReDS. Additionally, M1xchange has also signed up MOU with numerous state governments, including Maharashtra Haryana, Goa, Madhya Pradesh and Tamil Nadu to offer liquidity to the state’s MSMEs while ensuring timely payments at a competitive rate.

TReDS also benefits financiers on the platform with timely repayments and negligible defaults. Banks now have opened credit sanctions to BBB-rated corporates, benefiting MSME sellers of these corporates by enabling them to realize their payments digitally in advance. Further the cost of financing on TReDS is reduced by 5-8%, significantly lowering the business expenses for MSMEs. These savings are passed on to corporate customers, incentivizing both parties to adopt TReDS.

News

StoxBox: Views on India Gross Domestic Product (GDP) Quarterly YoY data

Jun 1, 2024 by Mansi Praharaj 0 Comments #GDP, #Indian economy, #StoxBox, #YoY data

BY: Manish Chowdhury, Head of Research, StoxBox

The Indian economy grew more-than-expected by 7.8% annually in the fourth quarter of FY24, much ahead of market expectations of a 6.7% growth. The growth momentum in the economy which grew 8.2% in FY24 can be attributed to the strong performance of the manufacturing and mining sectors due to the quality of capex spending in targeted areas and sustained domestic demand. With various high-frequency indicators indicating the sustenance of this growth in the current quarter as well, we believe that the initial groundwork is laid for beating market estimates and an upward revision to forecasts as we move ahead. We are of the view that the capex spending, which has moderated due to elections, would pick-up steam in future, thereby providing further fillip to the growth momentum.

News

Tata AIA Life Launches Midcap Momentum Index Fund as Indian Economy Poised for Multi-Fold Expansion

Jun 1, 2024 by Mansi Praharaj 0 Comments #Harshad Patil, #Index Fund, #Tata AIA Life

New Delhi, May 31, 2024: Tata AIA Life Insurance (Tata AIA), one of India’s leading life insurers, has launched the Midcap Momentum Index Fund, a new fund offer aimed at capitalizing on the dynamic growth potential of India’s midcap sector.

The Indian equity market presents significant wealth creation opportunities as the economy is expected to grow multi-fold over the next few decades. Driven by growing consumption, rising disposable income, the shift towards organized sectors, global supply chain realignment, and supportive government policies, these factors create a favorable environment for midcap companies to thrive. The New Fund Offering (NFO) window will remain open until June 15 at a NAV of Rs. 10 per unit.

The Midcap Momentum Index Fund will mirror the Nifty Midcap 150 Momentum 50 index. This index tracks the performance of the top 50 high growth companies within the Nifty Midcap 150, selected based on their Normalized Momentum Score, offering investors a chance to benefit from high-growth midcap stocks.

Key Highlights of the Midcap Momentum Index Fund that offers consumers compelling reasons to invest:

  • Investment Objective: long-term capital appreciation through a diversified portfolio of midcap companies.
  • Fund Composition: 80%-100% in equity and equity-related instruments, 0%-20% in cash, and money market securities

Commenting on the launch, Harshad Patil, Executive Vice President, and Chief Investment Officer (CIO) of Tata AIA said, “The Midcap momentum index has grown 11x in the last 9 years, demonstrating the robust growth of India’s midcap sector. With the Midcap Momentum Index Fund, we aim to provide our investors with an attractive proposition to capitalize on this dynamic sector powered by India’s growth story. India is well into its Amrit Kaal, driven by robust growth in manufacturing and services sector, rising consumption demand, financialization of saving etc. Our offering enables consumers to enjoy long term returns, backed by the financial security and health & wellness benefits from the underlying investment linked plans offered by us.”

Tata AIA policyholders can invest in this fund through the company’s ULIP offerings, including Fortune Pro, Wealth Pro, Fortune Maxima, and more. They can also invest in the fund through innovative ILP solutions like Param Rakshak Plus and Pro-Fit, which offer multiple benefits across health, wellness, and life cover. This provides consumers with the unique opportunity to benefit from the long-term growth potential of equity while securing their loved ones with the protection of a life insurance cover.

Mr. Samit Upadhyay, President – CFO & Head of Products and Propositions of Tata AIA added “At Tata AIA, we continuously strive to innovate and offer solutions that cater to the diverse financial needs of our consumers. The Midcap Momentum Index Fund, combined with our Param Rakshak series and Pro-Fit, provides a unique proposition that balances growth potential with the security of life insurance and health coverage. We are confident that this new fund will resonate with our investors seeking to achieve their long-term financial goals.”

Tata AIA Life Insurance continues to innovate and deliver exceptional value to its policyholders. With the introduction of the Midcap 150 Momentum 50 Index Fund, Tata AIA reaffirms its commitment to providing robust investment opportunities that align with the evolving financial goals of its consumers. By investing in this fund, policyholders can harness the growth potential of India’s midcap segment while enjoying the security and peace of mind that comes with a comprehensive life insurance cover.

Tata AIA Funds have delivered Benchmark Beating Performance:

Last Five-Year Returns” (CAGR)
Tata AIA Funds Fund Return (%) * Benchmark Return (%) *
Multi Cap Fund 27.80% 16.10%
Top 200 Fund 27.14% 16.10%
India Consumption Fund 26.92% 16.10%

*Data as on April 30, 2024. Past Performance is not the indicative of future performance. Fund Benchmark: Multi Cap Fund, India Consumption Fund, Top 200 Fund: S&P BSE 200

Tata AIA’s investment philosophy reflects an unwavering commitment to policyholders, focusing on delivering superior, consistent, and risk-adjusted long-term returns, driven by a bottom-up stock-picking strategy. The Company has built a well-defined research process and takes a long-term view to ensure continuous value for its consumers. The total Assets Under Management (AUM) has crossed INR. 1 Lakh crores mark in April 2024. Notably, 91% of the rated AUM of Tata AIA is rated 4 star or 5 stars on a 5-year basis as of March 31, 2024, by Morningstar Ratings**

© 2024 Morningstar. All rights reserved. The Morningstar name is a registered trademark of Morningstar, Inc. in India, and other jurisdictions. The information contained here: (1) includes the proprietary information of Morningstar, Inc. and its affiliates, including, without limitation, Morningstar India Private Limited (“Morningstar”); (2) may not be copied, redistributed or used, by any means, in whole or in part, without the prior, written consent of Morningstar; (3) is not warranted to be complete, accurate or timely; and (4) may be drawn from data published on various dates and procured from various sources and (5) shall not be construed as an offer to buy or sell any security or other investment vehicle. Neither Morningstar, Inc. nor any of its affiliates (including, without limitation, Morningstar) nor any of their officers, directors, employees, associates, or agents shall be responsible or liable for any trading decisions, damages or other losses resulting directly or indirectly from the information.

News

ServiceNow Ecosystem ventures make strategic growth investment in inMorphis

Jun 1, 2024 by Mansi Praharaj 0 Comments #Ecosystem venture, #Himanshu Singhal, #Marion Ryan, #ServiceNow

India, 1st june 2024: ServiceNow (NYSE: NOW), the AI platform for business transformation, announced a strategic investment in inMorphis, a global IT Company and leading pure-play ServiceNow partner. The ServiceNow Ecosystem Ventures Program investment will accelerate the expansion of inMorphis’ go-to-market capabilities with a deep focus on India and ASEAN markets and enhance its proficiency in generative AI-enabled technologies. It will also develop job-ready technology talent as part of ServiceNow’s global Rise Up initiative. ServiceNow Ecosystem Ventures is investing in inMorphis alongside Capital Square Partners (CSP), the lead investor.

India’s journey into the Techade is at a new inflection point, as the second fastest digitizing economy in the world. Digital ecosystems spanning sectors such as financial services, logistics, job markets, and e-governance could account for up to half of the projected growth. While companies embrace digital transformation to improve efficiency, gain competitive edge, and boost new revenue streams, they face significant hurdles, including infrastructure gaps, challenges in integrating legacy systems, and a shortage of necessary skilled talent.

The investment, along with ServiceNow’s platform capabilities and expertise, will empower inMorphis to drive hyper growth in target markets such as India and ASEAN through inorganic initiatives, strategic tuck-ins, to expand capabilities and footprint in select industries and markets.

Marion Ryan ServiceNow VP Global Partnerships and Channels APAC, said, “As a pure-play ServiceNow partner in India, inMorphis has demonstrated exceptional ability in leveraging our platform capabilities to drive significant digital transformation for enterprises. This investment underscores our commitment to fostering innovation, deepening Gen AI-led offerings, and accelerating time to value for enterprises. As part of our global RiseUp campaign, we look forward to creating a cutting-edge and agile workforce with inMorphis to address the tech skills development opportunity in the industry”.

Himanshu Singhal, Chief Executive Officer and Founder at inMorphis said, “We have had a long-standing relationship and mutually beneficial partnership with ServiceNow over the last seven years. As a pure-play partner, we have been at the forefront of advancing the adoption of ServiceNow and have successfully implemented industry defining solutions in several sectors. ServiceNow’s platform and expertise will accelerate our growth journey and help us expand our delivery and sales footprint throughout India and beyond, organically and inorganically.”

In support of RiseUp with ServiceNow, a global skilling initiative aimed at digitally upskilling one million people, inMorphis will equip and deploy more than 2500 professionals with in-demand skills on the NOW platform. This expansion will enable inMorphis to effectively address urgent customer needs and drive success at scale. The future-ready workforce, composed of domain experts and university graduates, will not only be well-versed in ServiceNow workflows but also empowered to lead significant digital transformation projects.

Founded in 2015, inMorphis maintains a steadfast focus on innovation, having developed a suite of unique proprietary products and accelerators to complement and extend ServiceNow platform capabilities and supporting enterprise customers in their digital transformation journeys. inMorphis has a highly skilled team of 350+ niche experts with over 1,300 ServiceNow credentials. Its global delivery network caters to enterprise clients across multiple verticals, including financial services, technology, aviation, and telecom.

ServiceNow Ecosystem Ventures program, launched in May 2023 to fuel partner growth in key emerging global markets. ServiceNow’s support allows partners to extend their go‑to‑market capabilities and deepen their experience with ServiceNow’s technology and solutions to deliver value more quickly. The investment builds on ServiceNow’s commitment to invest in India and ASEAN market. In October 2023, ServiceNow joined Accel as a co-investor in ANSR (an Accel portfolio company) to accelerate growth in key global markets and increase talent capacity for ANSR clients by establishing ServiceNow Centers of Excellence in more than 60 GCCs across India. Recently, ServiceNow Ecosystem Ventures has invested in global companies including Blueship Co.,Ltd and Japan System Co., Ltd., Plat4mation and AoraNow.