HSBC launches embedded finance venture with fintech Tradeshift

B2B fintech Tradeshift has secured $35m in funding from HSBC as the two jointly launch a new venture creating an embedded finance solutions and financial services app.

HSBC will provide the funding over two stages, as part of a bigger funding round which is expected to raise at least $70m in total from both the bank and other investors for the cloud-based supply chain platform.

Through the joining venture, HSBC and the Copenhagen-born fintech will create a range of digital solutions across both Tradeshift and other platforms, including payment and fintech services embedded into trade, e-commerce and marketplace experiences.

“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,” HSBC global commercial banking CEO Barry O’Byrne said. 

“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.”

According to Tradeshift, its vision is to “connect every company in the world digitally, creating economic opportunity for all”.

It currently has a team of more than 800 people across offices in 13 countries, supporting more than $260bn of annual gross merchandise value for 1 million business users on its platform. 

“HSBC’s reputation and global infrastructure bring instant credibility and broad appeal to any financial solutions brought to market through the Tradeshift platform,” Tradeshift co-founder and CEO Christian Lanng said.

It’s transformative, and it’s a tremendous validation of the innovation and product architecture we have developed over the past decade.”