HSBC Announce Embedded Finance JV with Tradeshift
(1 August 2023 - Global) HSBC has invested $35 million in supply chain finance outfit Tradeshift as part of plans to create a new joint venture company focused on the development of embedded financial services.
The agreement is part of a funding round which is expected to raise a minimum of $70 million from HSBC and other investors.
The new joint venture will allow HSBC and Tradeshift to deploy a range of payment and fintech services embedded into trade and e-commerce marketplaces, with the intention of unclogging the flow of working capital across supply chains.
Barry O'Byrne, CEO of Global Commercial Banking at HSBC, says “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.”
Tradeshift supports over $260 billion of annual gross merchandise value for a million business users on its platform, including global giants such as HSBC, Societe Generale, Air France-KLM, DHL and Fujitsu.
HSBC is a previous investor in the business, joining a $250 million Series A round in 2018.
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