Axis Bank is setting up a joint venture with Mjunction Services for a trade receivables discounting platform. The bank has told the stock exchanges it has invested Rs 16.5 crore in A.Treds, which is its subsidiary, while Mjunction has brought in Rs 8.25 crore. The bank will hold a 67% stake in A.Treds and Mjunction will own the remaining. A.Treds is licensed by the Reserve Bank of India to start a trade receivables discounting system (TReDS), which is aimed at improving the flow of funds to micro, small and medium enterprises by reducing the receivables realisation cycles. Mjunction, which is an equal joint venture between Tata Steel and Steel Authority of India, is India’s largest online B2B marketplace and dominates transactions related to the steel industry.
