121 Finance

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.

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

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

PRIMARYFSABAHAB

Open Account Trade Finance (Receivables/Payables Finance)

Financial & Insurance/Banking (Commerical, Retail & Consumer)/Trade Finance & Supply Chain Banking

SECONDARYFSAGAIAC

B2B / Invoice-Based BNPL (Trade Credit at Checkout)

Financial & Insurance/Financial Technology (Fintech)/BNPL & Point-of-Sale Financing Platforms

SECONDARYFSABAIAJ

Working Capital Solutions (dynamic discounting, supply-chain payables/receivables)

Financial & Insurance/Banking (Commerical, Retail & Consumer)/Transaction Banking (Cash Management & Treasury Services)

SECONDARYFSAGACAG

Transaction Analytics & Cash-Flow Insights (risk signals, forecasting)

Financial & Insurance/Financial Technology (Fintech)/Open Banking & Data Aggregation

Keywords

• Invoice factoring services
• MSME working capital
• Embedded trade finance
• Receivables discounting
• Supply chain finance

Headquarters

HQ city

Jaipur

HQ country

India

HQ region

Asia

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. 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.
2. 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.
3. 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.
4. 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.
5. 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

Go-to-market motion4 records

Distribution channels4 records

Marketing channels6 records

Core 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

Named customers4 records

Segments5 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration11 records

Feature5 records

Partnerships

Ten partnerships are on record, tiered minor and core.

• AcceptMyInvoice.comminorStrategic or Co-development Partner · 3 October 2024121 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)coreStrategic or Co-development Partner121 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)coreTechnology or Integration121 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)coreTechnology or Integration121 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)coreChannel Partner/ Reseller/ Distributor121 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)coreChannel Partner/ Reseller/ Distributor121 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)coreChannel Partner/ Reseller/ Distributor121 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)coreChannel Partner/ Reseller/ Distributor121 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)coreTechnology or Integration121 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)coreStrategic or Co-development Partner121 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

Emerging 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

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Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about 121 Finance