HSBC and Tradeshift Unveil SemFi

HSBC has introduced SemFi, a new embedded finance company created through its joint venture with fintech firm Tradeshift, based in San Francisco. This new platform is designed to provide e-commerce and marketplace platforms, including those within the Tradeshift network, with integrated payment, trade, and financing solutions powered by HSBC.

At launch, SemFi offers services like AI-driven digital invoice financing tailored for small and medium-sized enterprise (SME) suppliers, as well as virtual business cards. The company is initially rolling out its services in the UK and Hong Kong, with plans to expand into additional offerings such as digital wallets and purchase order (PO) financing in the future.

HSBC first announced its joint venture with Tradeshift in August last year, and since then, the companies have been collaborating on the development of SemFi. HSBC holds a 75% stake in the venture, while Tradeshift owns the remaining 25%.

SemFi is supported by a two-stage $35 million investment from HSBC and is led by CEO Vinay Mendonca and COO Shehan Silva, both of whom previously held leadership roles in HSBC’s global trade and receivables finance division. The duo took on their new positions last November.

Commenting on SemFi’s launch, Mendonca emphasised the company’s goal to provide businesses with seamless financial solutions integrated into their e-commerce platforms “when and where they need them.” He also highlighted the joint venture’s approach, combining the innovative mindset of a start-up with HSBC’s global reach and financial expertise, to offer optimal solutions for business clients and e-commerce partners.