HSBC and Tradeshift Embark on $35M Joint Venture to Revolutionize Financial Services

In a move to enhance its digital offerings and improve working capital flow across supply chains, HSBC has invested $35 million in supply chain finance company Tradeshift. This investment is part of a larger funding round that is expected to raise a minimum of $70 million from HSBC and other investors. The ultimate aim is to establish a new joint venture company focused on the development of embedded financial services.

The need for embedded financial services

In today’s fast-paced business environment, streamlining trade and payment processes is crucial for businesses and suppliers to operate efficiently. However, the flow of working capital across supply chains often encounters bottlenecks and inefficiencies. Recognizing these challenges, HSBC and Tradeshift are joining forces to deliver a comprehensive solution by embedding payment and fintech services into trade and e-commerce marketplaces.

The Vision of the New Joint Venture

By combining HSBC’s expertise in global banking and Tradeshift’s cutting-edge technology, the joint venture aims to revolutionize the way businesses and suppliers trade. The collaboration will focus on leveraging Tradeshift’s existing platform to improve trade and payment processes. This will enable seamless interactions between buyers and suppliers, ultimately unclogging the flow of working capital and enhancing operational efficiency.

Excitement in HSBC’s Global Commercial Banking Division

Barry O’Byrne, the CEO of Global Commercial Banking at HSBC, expresses his excitement about the partnership with Tradeshift. O’Byrne emphasizes that the joint venture will deliver world-class technology and solutions that enable businesses and suppliers to trade more smoothly. This investment aligns perfectly with HSBC’s digital-first strategy and its commitment to collaborating with fintech companies.

HSBC’s commitment to being a digital-first bank

As the banking industry continues to undergo digital transformation, HSBC is determined to be at the forefront. The agreement with Tradeshift is a key step towards fulfilling HSBC’s vision of becoming a digital-first bank. HSBC recognizes the importance of partnering with fintech companies and integrating its solutions into the platforms of others. This strategy allows HSBC to deliver enhanced services and cater to the evolving needs of its customers.

Tradeshift’s impressive track record and HSBC’s previous investment

Tradeshift operates a leading platform that supports over $260 billion of annual gross merchandise value for one million business users. Among its users are global giants such as HSBC, Societe Generale, Air France-KLM, DHL, and Fujitsu. HSBC’s previous investment in Tradeshift was during a $250 million Series A round in 2018, which demonstrates the bank’s confidence in Tradeshift’s capabilities and potential.

Aligning with HSBC’s digital-first strategy

The investment in Tradeshift is in line with HSBC’s broader digital-first strategy. As the world increasingly embraces digital innovations and technology-driven solutions, HSBC is committed to leveraging partnerships with fintech companies to enhance its offerings. This collaboration with Tradeshift is part of HSBC’s efforts to embrace digital transformation and provide its clients with seamless financial services.

Leveraging Tradeshift’s technology for improving trade processes

The joint venture aims to leverage Tradeshift’s advanced technology and solutions to improve trade and payment processes for businesses and suppliers. By embedding financial services into trade and e-commerce marketplaces, both HSBC and Tradeshift seek to streamline operations, reduce administrative burdens, and expedite the movement of working capital within supply chains. This will enable businesses to focus more on their core operations and foster smoother trade interactions.

Accelerating working capital flow and promoting seamless trade

The collaboration between HSBC and Tradeshift is set to have a positive impact on accelerating working capital flow. By creating embedded financial services within trade and e-commerce marketplaces, the joint venture aims to eliminate obstacles and bottlenecks in the movement of funds. This will result in more efficient transactions and improved liquidity for businesses and suppliers, leading to seamless trade interactions and sustainable growth.

In conclusion, HSBC’s $35 million investment in Tradeshift for a new joint venture company focused on embedded financial services is a significant step in the bank’s digital transformation journey. By combining their respective expertise and resources, HSBC and Tradeshift aim to revolutionize trade and payment processes. This collaboration will not only accelerate the flow of working capital but also promote smooth trade interactions, benefiting businesses and suppliers across the globe. Moving forward, the joint venture is expected to deliver innovative solutions that address the evolving needs of the digital economy.

Explore more

Is Your Financial Data Safe From Supply Chain Cyber-Attacks?

In an era defined by digital integration, the financial industry is acutely aware of the escalating threat posed by supply chain cyber-attacks. These attacks serve as reminders of the persistent vulnerability pervading modern financial systems, particularly when interconnected networks come into play. A data breach involving a global banking titan like UBS, through the exploitation of an external supplier, exemplifies

Anant Raj’s $2.1B Data Center Push Amid India’s AI Demand Surge

In a significant move, Anant Raj has committed $2.1 billion to bolster data center infrastructure in India, against a backdrop of increasing digitalization and stringent data storage regulations. With plans to unveil two new server farms in Haryana, the company aims to achieve a massive capacity of over 300 megawatts by 2032. India’s data center capacity is projected to grow

Wizz Air and Amex Join Forces for Flexible Travel Payments

The recent collaboration between Wizz Air, a prominent low-cost airline, and American Express has unveiled a promising chapter for travelers by offering enhanced payment flexibility. This alliance permits Amex Cardmembers to utilize their cards not only for flight bookings but also for onboard purchases with Wizz Air, ensuring a seamless payment experience. With Amex recognized for its reliable services and

Texas SB-6: Data Centers Face New Grid Rules and Opportunities

In 2025, Texas finds itself at a pivotal moment, transforming its energy landscape through legislative reforms aimed at fortifying the reliability of its power grid. Amidst rapidly expanding electricity needs, Senate Bill 6 (SB-6) emerges as a crucial regulatory framework that significantly alters how substantial energy consumers, notably data centers, interact with the grid. Crafted with the intent to stabilize

AI-Driven Solutions Revolutionize Marketing Technology Trends

In the rapidly evolving landscape of marketing technology (MarTech), artificial intelligence is leading a revolution, reimagining how businesses engage with their customers. With the capability to enhance customer experience, streamline marketing processes, and optimize digital strategies, AI is reshaping the industry. Companies across the globe are increasingly leveraging AI-driven solutions to provide personalized, efficient, and impactful marketing outcomes. This transformation