HSBC and Tradeshift Launch SemFi – A New Embedded Finance Venture for SMEs

HSBC, a global banking leader has partnered with Tradeshift, a Danish B2B trade network to introduce SemFi by HSBC, a joint venture designed to streamline finance solutions for businesses. By embedding finance services directly into e-commerce platforms, this venture seeks to simplify financial processes, making it easier for companies, especially small and medium-sized enterprises (SMEs), to access payments and financing.

A Seamless Financial Solution for E-commerce

The partnership integrates HSBC’s payment, trade, and financing options within Tradeshift’s B2B marketplace and other digital platforms. This approach allows businesses to manage invoices, payments, and financing without leaving their e-commerce environment, thereby offering a more efficient way for SMEs to manage their financial needs.

Targeted SME Solutions in the UK

Initially launched in the UK, SemFi provides SMEs with digital invoice financing and HSBC virtual cards, which add security and flexibility in managing expenses. The joint venture will eventually expand globally, with cross-border transactions expected in 2025, subject to HSBC’s international network.

Leadership with Expertise

SemFi is led by HSBC’s Vinay Mendonca as CEO and Shehan Silva as COO, both bringing significant experience from the bank’s trade finance division. Mendonca emphasized that SemFi’s goal is to meet growing demand for integrated financial solutions that enhance growth and operational efficiency for business customers.

Driving Growth in Embedded Finance

This joint venture comes on the heels of HSBC’s $35 million investment in Tradeshift, further supporting HSBC’s strategy to expand its digital finance capabilities. Embedded finance solutions like those offered by SemFi represent a fast-growing market, projected to reach significant revenue in Europe alone by 2030.

Through SemFi, HSBC and Tradeshift are paving the way for businesses to leverage finance directly within their digital operations, enabling SMEs to boost liquidity, streamline cash flow, and drive growth across their e-commerce activities.

Sources

1. Tradeshift – Press release
2. Fintech Magazine
3. Fintech Global
4. Future Banking