Revolutionizing Business Finance: HSBC and Tradeshift Launch Groundbreaking Embedded Finance Venture

In a strategic move to redefine the future of business finance, global banking giant HSBC and leading B2B trade network Tradeshift have joined forces to launch a new, jointly owned venture called SemFi by HSBC. This innovative partnership aims to deliver seamless embedded finance solutions and financial services applications, empowering businesses of all sizes to streamline their financial operations and unlock new growth opportunities.

Unlocking the Power of Embedded Finance for Businesses

Seamless Integration of Financial Services

SemFi by HSBC is poised to revolutionize the way businesses access and manage their financial services. By integrating HSBC's robust payment, trade, and financing capabilities across various e-commerce and marketplace platforms, including Tradeshift's own B2B network, the venture will provide a seamless and streamlined experience for its clients. This integration will enable small and medium-sized enterprises (SMEs) to effortlessly access digital invoice financing from HSBC, directly within the platforms they already use, eliminating the need for cumbersome and time-consuming processes.

Enhanced Flexibility and Security for SMEs

The new venture will also offer SMEs enhanced flexibility and security in their spend management through HSBC's virtual card solutions. By leveraging these innovative tools, businesses will be able to better control and monitor their expenses, ensuring greater financial transparency and security. This integration of financial services within the digital ecosystems that businesses already operate in will empower them to focus on their core operations, while seamlessly accessing the financial support they need to thrive.

A Startup Mindset with Global Expertise

SemFi by HSBC is designed to combine the agility and innovation of a startup with the global scale and expertise of an international bank. As a technology-focused company, the venture will not operate as a traditional banking entity, but rather as a platform that seamlessly connects businesses with the financial solutions they require. This unique approach will enable the venture to deliver cutting-edge embedded finance capabilities, tailored to the specific needs of its clients, while leveraging HSBC's extensive resources and industry knowledge.

Empowering Businesses to Grow and Succeed

Vinay Mendonca, the CEO of SemFi by HSBC, emphasizes the importance of this venture in meeting the evolving needs of businesses. "Businesses are increasingly looking for seamless financial solutions that are embedded within their e-commerce journeys, so they can access these when and where they need them," he explains. "SemFi by HSBC aims to deliver such embedded capabilities to help businesses grow. It will seek to bring the best of both worlds to our business customers and e-commerce partners; a startup technology mindset coupled with the global scale and expertise of an international bank."

A Strategic Partnership Fueled by Shared Vision

The launch of SemFi by HSBC is the culmination of a strategic partnership between HSBC and Tradeshift, first announced in August 2022. As part of this agreement, HSBC has committed to a $35 million investment in Tradeshift, to be made in two phases. This investment underscores the shared vision and commitment of both parties to revolutionize the way businesses access and manage their financial services.

Empowering Businesses Globally

HSBC, with its extensive global reach, currently supports approximately 1.3 million businesses worldwide, facilitating more than $800 billion in annual trade flows. Tradeshift, on the other hand, supports over $260 billion in annual gross merchandise value for a million business users on its platform. By combining their respective strengths and expertise, SemFi by HSBC is poised to empower businesses of all sizes, across various industries and regions, to unlock new growth opportunities and thrive in the ever-evolving digital landscape.