121 Finance
121 Finance is an RBI-registered NBFC-Factor providing invoice factoring, GeM Sahay embedded working capital, Purchase Finance, and TReDS invoice discounting to underserved Indian MSMEs, with a focus on service-based, manpower-intensive, and government-supplier segments across all 28 states and 8 union territories.
- Company typePrivate
- Founded1984
- HeadquartersJaipur, India
- Headcount11–50
- GTM typeB2B
- OfferingServices
What 121 Finance does
121 Finance is a Jaipur-headquartered, RBI-registered NBFC-Factor that provides working-capital financing to Indian micro, small and medium enterprises (MSMEs), with a deliberate focus on service-based and manpower-intensive businesses (security, housekeeping, logistics) that are typically excluded from formal credit. The company was incorporated in 1984 (originally as Yerrow Finance and Investments Private Limited) and pivoted to become India's first NBFC-Factor under the 2022 Registration of Factors Regulations. Its product suite spans invoice factoring (advancing up to 90–95% of invoice value), GeM Sahay embedded working-capital loans against government purchase orders, Purchase/Trade Credit Finance, and invoice discounting via participation in all three RBI-regulated TReDS platforms (M1xchange, InvoiceMart, RXIL, C2Treds).
The company's proprietary technology stack is built on India's Digital Public Infrastructure — Aadhaar eKYC, DigiLocker, the Account Aggregator framework, and OCEN APIs — enabling straight-through processing (STP) of KYC, credit decisioning, offer generation, and settlement. As one of the earliest embedded finance partners on the Government e-Marketplace (GeM Sahay), 121 Finance disburses collateral-free loans as small as ₹127 against confirmed POs within the procurement flow itself; it was also the first lender on GeM Sahay 2.0 (OCEN-based) from January 2025. Cumulative disbursements stand at ₹4,000+ crores across 590 cities and all 28 Indian states / 8 union territories.
Revenue is generated through transaction-based take rates: factoring setup fees (1–2.5% of approved credit limit), transaction fees (0.25–1% of invoice value), and discounting fees (1–2% per month) on the receivables financed. GTM combines digital self-service onboarding via the company portal, enterprise field sales through relationship managers, OEM-style embedded distribution on GeM Sahay and OCEN, and competitive bidding across TReDS marketplaces. The company was acquired AcceptMyInvoice.com in October 2024 to extend trade-credit workflow capabilities, and operates under the Modani family (Dr. Ravi Modani as Founder & MD) with a stated headcount of 11–50 employees and no disclosed external institutional funding.
121 Finance firmographics
Firmographics- Name
- 121 Finance
- Legal name
- 121 Finance Private Limited
- Website
- https://121finance.com
- Company type
- Private
- Founded year
- 1984
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- 121 Finance is an RBI-registered NBFC-Factor providing invoice factoring, GeM Sahay embedded working capital, Purchase Finance, and TReDS invoice discounting to underserved Indian MSMEs, with a focus on service-based, manpower-intensive, and government-supplier segments across all 28 states and 8 union territories.
- Ownership category
- akta.pro rank
121 Finance industry classification
Industry- Product category
- MSME Trade Finance and Receivables Factoring
- NAICS
- Sales Financing (52222), Activities Related to Credit Intermediation (5223)
- SIC
- Short-Term Business Credit Institutions (6153)
- akta.pro industry
- Open Account Trade Finance (Receivables/Payables Finance)B2B / Invoice-Based BNPL (Trade Credit at Checkout)Working Capital Solutions (dynamic discounting, supply-chain payables/receivables)Financial & Insurance/Banking (Commerical, Retail & Consumer)/Transaction Banking (Cash Management & Treasury Services)Transaction Analytics & Cash-Flow Insights (risk signals, forecasting)
Keywords
Where 121 Finance is headquartered
LocationHeadquarters
- HQ city
- Jaipur
- HQ country
- India
- HQ region
- Asia
Offices2 records
Markets served
121 Finance business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure
Revenue model
- Factoring / Invoice Finance: 121 Finance provides invoice factoring to MSMEs — businesses sell unpaid invoices/receivables to the company (as an RBI-registered NBFC-Factor) and receive immediate cash (up to 90-95% of invoice value) upfront. The company collects payment directly from the buyer on the due date and remits the remaining balance minus fees. This is off-balance-sheet financing, not a loan, and is their primary revenue-generating product line.
- GeM Sahay Embedded Working Capital: Collateral-free short-term working capital loans for MSME suppliers on the Government e-Marketplace (GeM). Loans are sanctioned against the strength of confirmed government purchase orders with no physical collateral required. Repayment is routed through the cash flow generated by the order. This embedded finance product generates interest/transaction income on micro-loans originated within the GeM ecosystem.
- Trade Credit Finance: Extends credit to buyers for purchases from suppliers, optimizing payment terms for both sides of the trade. Provides working capital support to both buyers and sellers, covering accounts payable and accounts receivable management. Revenue generated through interest/fee income on the credit extended.
- Purchase Finance (Payable Finance): Provides buyer credit for businesses to fulfill purchase orders — paying suppliers upfront for raw materials, inventory, or goods. Sellers receive instant payment while buyers get extended credit terms. Revenue model based on transaction fees and interest on the credit limit extended, typically up to 2x the PO value.
- TReDS Invoice Discounting: As an NBFC-Factor onboarded across all three TReDS platforms (M1xchange, InvoiceMart, RXIL, C2Treds), 121 Finance participates in competitive bidding for invoice discounting on these RBI-regulated platforms. MSMEs upload invoices, and multiple financiers bid — 121 Finance offers rates, generating revenue through discounting margins.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | Multi-year contract | Factoring Setup Fee: 1%–2.5% of the approved credit limit |
| Transaction based/ take rate | Pay-as-you-go | Transaction Fee: 0.25%–1% of the invoice amount per transaction |
| Usage-based | Pay-as-you-go | Discounting Fee: 1%–2% per month on the invoice amount |
| Transaction based/ take rate | Pay-as-you-go | Up to 95% of invoice value advanced upfront |
| Transaction based/ take rate | Pay-as-you-go | Purchase Finance Credit Limit: Up to 2x PO value |
Go-to-market motion4 records
Distribution channels4 records
Marketing channels6 records
121 Finance product offering
Product offeringCore offering
121 Finance is an RBI-registered NBFC-Factor providing collateral-free working capital finance to Indian MSMEs through invoice factoring, purchase finance, trade credit finance, and embedded lending on government procurement platforms. Its flagship GeM Sahay product enables MSME suppliers to access up to 95% of invoice value upfront against confirmed purchase orders, with origination, underwriting, and disbursement performed digitally via India's Digital Public Infrastructure (OCEN, India Stack, Account Aggregator framework). The company is also onboarded as a financier across all three RBI-regulated TReDS platforms (M1xchange, InvoiceMart, RXIL/C2Treds).
Product overview
121 Finance is a digital NBFC-Factor offering a modular working capital financing platform for MSMEs. Its core product suite centers on invoice factoring and receivables-based financing (Factoring, Trade Credit Finance, Purchase Finance, Working Capital Finance), with GeM Sahay as its flagship embedded finance product enabling collateral-free working capital within the government procurement ecosystem. All products are powered by RBI-registered NBFC-Factor status and leverage India's Digital Public Infrastructure (OCEN, India Stack, Account Aggregator framework). The company is also onboarded across all three TReDS platforms to offer invoice discounting at scale.
Differentiator
Problem solved
Functional benefit
Brands
- GeM Sahay: Embedded finance product enabling MSME suppliers on Government e-Marketplace to access working capital against purchase orders
- Factoring
- Trade Credit Finance
- Purchase Finance
- TReDS
Products and services
- Factoring (Invoice Factoring) Invoice factoring service that enables B2B businesses to convert unpaid receivables into immediate working capital by selling invoices to 121 Finance (an RBI-registered NBFC-Factor). Advances up to 95% of invoice value upfront, off-balance-sheet, with no collateral required and no fixed EMIs; 121 Finance collects directly from buyers on the due date.
- GeM Sahay (Embedded Working Capital Finance) Embedded finance product integrated into the Government e-Marketplace (GeM) that enables MSME suppliers to access collateral-free working capital against confirmed government purchase orders directly within the GeM procurement flow. Powered by OCEN and India Stack for real-time digital origination, underwriting, and disbursement.
- TReDS Invoice Discounting TReDS-based invoice discounting service where 121 Finance participates as a financier on RBI-regulated Trade Receivables Discounting System platforms (M1xchange, InvoiceMart, RXIL, C2Treds), offering MSMEs early payment on invoices against corporate and government buyers at competitive rates.
- Purchase Finance (Payable Finance) Purchase/Payable Finance product that helps MSMEs fulfill large orders by funding supplier payments for raw materials and inventory. Offers credit limits up to 2x the purchase order value, with a fully digital approval process and collateral-free structure; sellers receive instant payment while buyers get extended credit terms.
- Trade Credit Finance Trade credit finance solution for SMEs and MSMEs that extends credit for purchases, manages accounts payable and accounts receivable, and covers credit risk for both sides of a B2B trade without disrupting operations, addressing the trade credit gap typically unavailable to smaller businesses.
Quantifiable outcome
- ₹4,000+ crores disbursed
- +5 more outcomes
Companies that use 121 Finance
Customer profileNamed customers4 records
Segments5 records
Ideal customer profiles3 records
121 Finance technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration11 records
Feature5 records
121 Finance partnerships and signals
Strategic signalPartnerships
Ten partnerships are on record, tiered minor and core.
- AcceptMyInvoice.comminor121 Finance acquired AcceptMyInvoice.com in October 2024 to remove friction in trade credit for MSMEs. The acquisition likely added technology capabilities or customer access to streamline invoice factoring workflows.
- Government e-Marketplace (GeM)core121 Finance is among the earliest embedded finance partners on GeM Sahay, contributing to the development and scaling of embedded public procurement finance. Their platform enables fast, compliant, and frictionless working capital access directly within the GeM ecosystem. They went live on GeM Sahay in October 2021 and became the first lender on GeM Sahay 2.0 built on the OCEN framework in January 2025.
- OCEN (Open Credit Enablement Network)core121 Finance is one of the earliest adopters and active partners on OCEN. OCEN is a transformative API framework designed to democratize credit access in India by enabling seamless integration between loan agents, lenders, Technology Service Providers (TSPs), and credit guarantee schemes. Dr. Ravi Modani is a key contributor to OCEN's development as part of India's Digital Public Infrastructure.
- India Stack (iSPIRT)core121 Finance's technology stack is built on the rails of India's Digital Public Infrastructure — India Stack — leveraging components including Aadhaar eKYC, DigiLocker, Account Aggregator framework, and OCEN. iSPIRT has been behind several DPI initiatives including UPI and Aadhaar. The company actively participates in iSPIRT events and OpenHouse sessions.
- M1xchange (TReDS Platform)core121 Finance is onboarded as a financier on the M1xchange TReDS platform, an RBI-regulated electronic platform for financing and discounting of trade receivables. On M1xchange, MSMEs can upload invoices and 121 Finance participates in competitive bidding alongside banks and other NBFCs.
- InvoiceMart (NSE-SIDBI JV TReDS Platform)core121 Finance is onboarded as a financier on the InvoiceMart TReDS platform, a joint venture between NSE and SIDBI for financing and discounting of MSME trade receivables. InvoiceMart provides a marketplace for MSMEs to access competitive financing rates from multiple listed financiers including 121 Finance.
- RXIL (TReDS Platform)core121 Finance is onboarded as a financier on RXIL, the Receivables Exchange of India Limited TReDS platform. As a TReDS participant, 121 Finance can bid on MSME invoices discounted through RXIL's marketplace.
- C2Treds (TReDS Platform)core121 Finance is onboarded as a financier on C2Treds, another RBI-regulated TReDS platform. This completes the company's presence across all three TReDS platforms in India, maximizing distribution reach to MSME sellers seeking invoice discounting.
- Sahamati (Account Aggregator Network)core121 Finance operates as a Financial Information User (FIU) within the Account Aggregator ecosystem governed by Sahamati. The AA framework enables secure, consent-based sharing of financial data (bank statements, GST data) for faster credit assessment, eliminating the need for manual document submission.
- GeM Sahay (OCEN 2.0 Built on OCEN Framework)core121 Finance became the first lender on GeM Sahay 2.0 built on the OCEN framework (announced January 2025). GeM Sahay 2.0 features a registry of lenders, loan agents, and ecosystem participants; a product network for credit offerings; and standardized rules and governance for lending activities.
Scale indicators9 records
Recent moves6 records
Expansion highlights6 records
121 Finance competitors and assessment
Company assessmentEmerging players
- Klub: Klub provides revenue-based financing and growth capital to Indian brands and SMEs, including embedded financing. It overlaps with 121 Finance in the MSME working capital space and is comparable as an emerging, technology-led alternative lender serving digital-first small businesses.
- Lendingkart: Lendingkart is an NBFC providing working capital and SME loans to small businesses in India, with a focus on data-driven underwriting. It is comparable to 121 Finance as a tech-enabled MSME lender, though it is broader in product scope and less focused on factoring/trade receivables.
- FlexiLoans: FlexiLoans is a digital MSME lending platform offering working capital, business loans, and supply chain finance to small businesses. It overlaps with 121 Finance in the underserved MSME segment, though it is more focused on general working capital rather than invoice/receivables-based products.
Broad incumbents
- RXIL (Receivables Exchange of India): RXIL is one of the three RBI-regulated TReDS platforms, promoted by SIDBI and NSE. 121 Finance is onboarded as a financier on RXIL; as a broad incumbent TReDS operator, RXIL is comparable on the invoice-discounting value chain even though it operates a marketplace rather than lending its own balance sheet.
- M1xchange: M1xchange is an RBI-regulated TReDS platform on which 121 Finance bids as a financier. As a broader marketplace/incumbent, M1xchange is a peer in the sense that it operates in the same invoice-discounting space and serves the same MSME seller segment, but as a multi-financier exchange rather than a direct lending competitor.
- InvoiceMart: InvoiceMart is an NSE-SIDBI joint venture TReDS platform providing invoice discounting to MSMEs. 121 Finance is onboarded as a financier on InvoiceMart; it is a peer in the same trade-receivables discounting category with overlapping customer base.
Direct peers
- CredAble: CredAble is a supply chain financing platform offering invoice discounting, payable financing, and working capital solutions to Indian corporates and their suppliers. Its product mix and target audience overlap materially with 121 Finance's purchase finance, trade credit finance, and factoring products.
- KredX: KredX is an invoice discounting and receivables financing platform for Indian MSMEs and corporates. Like 121 Finance, it provides early payment against B2B invoices, operates in the same trade-receivables space, and serves overlapping customer segments.
- Vayana Finance: Vayana Finance is an invoice discounting and supply chain financing network in India. It enables MSMEs to get early payment on receivables from corporates via a digital platform, directly comparable to 121 Finance's factoring and trade credit finance offerings.
- Oxyzo (OfBusiness): Oxyzo is the NBFC arm of OfBusiness providing working capital and supply chain finance to SMEs and MSMEs. It is a direct competitor in MSME working capital lending, with a focus on procurement and supply chain financing similar to 121 Finance's purchase finance and embedded GeM Sahay products.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks6 records
Key highlights7 records
Customer concentration
121 Finance social profiles
Digital presence121 Finance financial estimates
Financial estimateRevenue estimate
Valuation estimate
121 Finance leadership team
Management profileNumber of profiles
Profiles5 records
121 Finance subsidiaries and ownership
Company hierarchySubsidiaries1 record
121 Finance funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
121 Finance M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about 121 Finance
What does 121 Finance do?
121 Finance is an RBI-registered NBFC-Factor providing collateral-free working capital finance to Indian MSMEs through invoice factoring, purchase finance, trade credit finance, and embedded lending on government procurement platforms. Its flagship GeM Sahay product enables MSME suppliers to access up to 95% of invoice value upfront against confirmed purchase orders, with origination, underwriting, and disbursement performed digitally via India's Digital Public Infrastructure (OCEN, India Stack, Account Aggregator framework). The company is also onboarded as a financier across all three RBI-regulated TReDS platforms (M1xchange, InvoiceMart, RXIL/C2Treds).
Is 121 Finance a public or private company?
121 Finance is a private company. It is classified as family owned and is currently operating.
When was 121 Finance founded?
121 Finance was founded in 1984. It employs 11 to 50 people.
Where is 121 Finance based?
121 Finance is headquartered in Jaipur, India, in the Asia region.
How does 121 Finance make money?
Five revenue lines are on record. Factoring / Invoice Finance is the primary driver. The others are geM Sahay Embedded Working Capital, trade Credit Finance, purchase Finance (Payable Finance) and TReDS Invoice Discounting.
Who are 121 Finance's main competitors?
Emerging players on record are Klub, Lendingkart and FlexiLoans. Broad incumbents are RXIL (Receivables Exchange of India), M1xchange and InvoiceMart. Direct peers are CredAble, KredX, Vayana Finance and Oxyzo (OfBusiness).
Does 121 Finance have an API?
No public API is recorded for 121 Finance.
What industry is 121 Finance in?
121 Finance's product category is MSME Trade Finance and Receivables Factoring. Its primary akta.pro industry code is FSABAHAB, Open Account Trade Finance (Receivables/Payables Finance), with a secondary code of FSAGAIAC, B2B / Invoice-Based BNPL (Trade Credit at Checkout). Its NAICS code is 52222 and its SIC code is 6153.