HSBC has signed an agreement with B2B fintech Tradeshift to launch a new, joint venture (JV) focused on embedded finance solutions and financial services apps.
Tradeshift is a business commerce platform that offers necessary tools for e-invoicing and AP automation services to B2B buyers and suppliers in more than 50 countries.
Under the terms of the JV agreement, HSBC will invest $35m in Tradeshift in two stages and will become a member of Tradeshift’s board.
The JV agreement is part of a funding round, in which HSBC and other investors are expected to contribute at least $70m.
HSBC global commercial banking CEO Barry O’Byrne said: “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.”
Through the new JV, which is planned to be launched in early 2024, HSBC and Tradeshift will offer several digital solutions across Tradeshift and other platforms.
The digital solutions include payment and fintech services embedded into trade, e-commerce and marketplace experiences.
With the new digital solutions, Tradeshift is enabled to scale its business commerce proposition across the world.
Tradeshift CEO and co-founder Christian Lanng said: “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’s transformative, and it’s a tremendous validation of the innovation and product architecture we have developed over the past decade.”
Last month, MODIFI, a fintech focused on cross-border business payments, secured a $100m debt facility with HSBC Innovation Banking UK, as part of its refinancing strategy.
Through the refinancing strategy, MODIFI aims to diversify its funding sources.
