HSBC is set to make a $35 million investment in business commerce platform Tradeshift, as part of an upcoming joint venture that will see the bank and B2B fintech launch a jointly-owned business.
The new business, when it launches next year, will focus on the development of embedded finance solutions and financial services apps.
Through the joint venture, HSBC and Tradeshift will deploy digital solutions across Tradeshift, as well as other platforms, including include payment and fintech services embedded into trade, ecommerce and marketplace experiences.
The $35 million investment in Tradeshift will be made in two stages by HSBC, which will also join the board.
The agreed investment is part of a funding round, which is expected to raise a minimum of $70 million from HSBC and other investors.
Barry O’Byrne, chief executive officer of global commercial banking at HSBC, 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.”
More details about the joint venture will be announced ahead of its planned launch in early 2024.
Tradeshift chief executive officer 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.”
Lanng added: “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.”
Following HSBC’s £1 purchase of the UK arm of Silicon Valley Bank earlier this year, in June, it rebranded SVB UK as a new standalone entity, HSBC Innovation Banking, with newly-formed innovation teams in the US, Hong Kong and Israel.