HSBC launches embedded finance venture SemFi with Tradeshift
HSBC has launched SemFi, a new B2B embedded finance technology company delivered through the bank’s joint venture with San Francisco-headquartered fintech Tradeshift.
HSBC launches SemFi with Tradeshift
The company enables e-commerce and marketplace venues, including those contained in Tradeshift’s network, to embed payment, trade and financing solutions from HSBC.
At launch, these solutions include AI-powered digital invoice financing for SME suppliers and virtual business cards, with the UK and Hong Kong designated as SemFi’s initial entry points into the market. Future developments are expected to include digital wallets and purchase order (PO) financing.
HSBC has been developing the offering with Tradeshift since August last year, when it first announced the joint venture. The bank holds a 75% stake in the venture, with the remaining 25% owned by Tradeshift.
Backed by a two-stage $35 million investment from HSBC, SemFi is led by CEO Vinay Mendonca and COO Shehan Silva, who both previously worked for HSBC’s global trade and receivables finance (GTRF) business before assuming their roles last November.
Speaking on the launch of SemFi, Mendonca says the company is set to enable businesses to embed financial solutions into their e-commerce journeys “when and where they need them”.
He explains that the joint venture aims to “bring the best of both worlds to our business customers and e-commerce partners” through a combination he describes as “a start-up technology mindset coupled with the global scale and expertise, of an international bank”.
