HSBC and B2B fintech Tradeshift have announced an agreement to launch a jointly-owned business focused on embedded finance solutions and financial services apps. As part of this agreement, HSBC will make a USD 35 million investment into Tradeshift in two stages and will join its board.

The agreement is part of a funding round which is expected to raise a minimum of USD 70 million from HSBC and other investors. Augmenting global trade with digital solutions The new joint venture enables HSBC and Tradeshift to deploy a range of digital solutions across Tradeshift and other platforms. This will include payment and fintech services embedded into trade, ecommerce, and marketplace experiences, and will help enable Tradeshift to scale its business commerce proposition across the globe.

More details about the joint venture will be announced ahead of its planned launch in early 2024. Officials from HSBC said that enabling and growing global trade has been in HSBC’s DNA for almost 160 years. They are happy 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 their strategy of being a digital first bank, which includes their commitment to partnering with fintechs and embedding solutions into the platforms of others. Also commenting in this venture, representatives from Tradeshift said that their deepening partnership with HSBC delivers a strong foundation from which to scale and accelerate their 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 a validation of the innovation and product architecture they have developed over the past decade. HSBC supports around 1.3 million businesses worldwide and is a large trade bank, facilitating over USD 800 billion of trade flows annually. Tradeshift supports over USD 260 billion of annual gross merchandise value for a million business users on its platform.

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