HSBC has teamed up with B2B global trade network Tradeshift to launch a joint venture that offers embedded finance solutions to business clients. The new venture, named SemFi by HSBC, will integrate the bank’s payment, trade, and financing services across various e-commerce and marketplace platforms, including Tradeshift’s own B2B network.
Initially focusing on the UK market, SemFi by HSBC will enable SME suppliers on e-commerce platforms to access digital invoice financing from HSBC. The venture also aims to provide SMEs with enhanced flexibility and security in their spend management through HSBC virtual cards.
Vinay Mendonca has been appointed as CEO of the new venture, alongside Shehan Silva as COO. Mendonca commented, “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. 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 combined with the global scale and expertise of an international bank.”
Last year, HSBC invested $35 million in Tradeshift, shortly before the Danish fintech faced serious allegations of sexual assault and harassment against its CEO Christian Lanng, who was subsequently dismissed.