HSBC launches embedded finance venture with Tradeshift

By Gloria Methri

HSBC and B2B FinTech Tradeshift have launched a new, jointly-owned business focused on the development of embedded finance solutions and financial services apps.

As part of the agreement, HSBC will make a $35 million investment into Tradeshift in two stages and will join its board. The agreement is part of a funding round that is expected to raise a minimum of $70 million from HSBC and other investors.

The new joint venture will allow the bank and the FinTech to deploy a range of digital solutions across Tradeshift and other platforms. It will also help enable Tradeshift to scale its business commerce proposition across the globe. More details about the joint venture will be announced ahead of its planned launch in early 2024.

Barry O’Byrne, CEO of Global Commercial Banking at HSBC, said: “Enabling and growing global trade has been in HSBC’s DNA for almost 160 years. We are very excited to partner with Tradeshift to help businesses and their suppliers trade more smoothly using world-class technology and solutions that the joint venture will deliver.”

“This agreement supports our strategy of being a digital-first bank, which includes our commitment to partnering with FinTechs and embedding our solutions into the platforms of others.”

Christian Lanng, CEO and Co-founder of Tradeshift, said: “The world’s biggest trade bank and the world’s largest trade network are joining forces. Our deepening partnership with HSBC delivers a strong foundation from which to scale and accelerate our vision of a trade network that creates economic opportunity for businesses everywhere.”

“HSBC’s reputation and global infrastructure bring instant credibility and broad appeal to any financial solutions brought to market through the Tradeshift platform. It is transformative, and it is a tremendous validation of the innovation and product architecture we have developed over the past decade.”

HSBC supports around 1.3 million businesses worldwide and is the world’s largest trade bank, facilitating over $800 billion of trade flows annually. Tradeshift supports over $260 billion of annual gross merchandise value for a million business users on its platform.