Axis Asset Management Company has launched Axis Account Plus, a digital treasury management solution designed to unlock the ₹25 trillion opportunity in MSME working capital. According to the asset manager, this represents the first digital working capital management solution by a fund house, enabling businesses to complete digital onboarding and offering treasury management features including maker-checker approvals, consolidated views across multiple entities, and instant transaction alerts.
As reported by Business Standard, B Gopkumar, managing director and CEO of Axis Asset Management Company, highlighted that approximately ₹25 trillion lies in current accounts that provide zero or negligible returns. The solution aims to improve returns on surplus working capital while making the process completely frictionless for MSMEs. The platform took nearly three years to build, with the biggest challenge being digitising the onboarding process and integrating it with registrar and transfer agent systems.
According to the fund house, India has over 3.1 million active corporates and limited liability partnerships, and more than 86 million MSMEs registered on the Government of India's Udyam platform. Despite this substantial scale, institutional folios in mutual funds remain at just around 1.4 million, indicating limited participation from the MSME sector. Mutual funds have a significant corporate investor base, but this is largely limited to large companies due to dedicated treasury management teams, while MSMEs have remained on the sidelines due to cumbersome account opening processes.
As reported by Business Standard, the fund house plans to distribute the Axis Account Plus solution through multiple channels including fintech partners, MF distributors, and direct channels. The company also plans to conduct outreach programmes with industry associations to expand adoption among MSMEs. The solution enables MSMEs to invest surplus working capital seamlessly in liquid and mutual fund schemes through a digital platform designed specifically for their needs.
