HSBC launches embedded finance venture SemFi with Tradeshift

HSBC has announced the launch of SemFi, a new B2B embedded finance technology company created through a joint venture with San Francisco-based fintech firm Tradeshift. SemFi aims to provide e-commerce and marketplace platforms, including those within Tradeshift’s network, with integrated payment, trade, and financing solutions from HSBC. Initially, the company will offer AI-powered digital invoice financing for SME suppliers and virtual business cards, with plans to expand to digital wallets and purchase order (PO) financing. The UK and Hong Kong are the first markets where SemFi will roll out its services.

HSBC has a 75% stake in the joint venture, with the remaining 25% owned by Tradeshift. The partnership, first announced in August last year, is backed by a two-stage $35 million investment from HSBC. SemFi is led by CEO Vinay Mendonca and COO Shehan Silva, both of whom previously worked for HSBC’s global trade and receivables finance division. The new venture is part of HSBC’s broader strategy to offer innovative financial solutions in the rapidly evolving e-commerce space.

Vinay Mendonca, SemFi’s CEO, emphasized that the new company will allow businesses to embed financial services into their digital operations seamlessly. He highlighted the joint venture’s goal of merging the agility and innovation of a fintech start-up with the global reach and financial expertise of HSBC, offering business customers and e-commerce partners comprehensive solutions tailored to their needs.