Tradeshift has lined up $70 million in funding and announced plans for a joint venture with banking and financial services giant HSBC. Together, they will expand financial services applications to B2B companies.

The internet supply chain and platform that fosters global commerce says it connects about 1 million companies across 190 countries. In doing so, it supports over $260 billion annually in the value of gross merchandise volume transacted on its platform. Its customers include such international players as:

• Food products company Danone S.A.
• Consumer brand manufacturer Unilever PLC.
• Logistics services providers DHL and Kuehne + Nagel.

Tradeshift’s customers also include The NHS, the UK’s National Health Service.

Tradeshift and HSBC funding plans

Tradeshift says it expects to use the funding and joint venture to focus “on expanding the range of value-added services we can offer to businesses — whether that’s B2B marketplaces, accounts payable automation, or embedded finance,” a Tradeshift spokesman says.

He adds that Tradeshift may also consider merger and acquisition activity “as we look to expand the value proposition for buyers and sellers.”

Christian Lanng, CEO, Tradeshift

“HSBC’s reputation and global infrastructure bring instant credibility and broad appeal to any financial solutions brought to market through the Tradeshift platform,” says Christian Lanng, Tradeshift CEO and co-founder.

Gert Syvlest, Tradeshift co-founder and general manager of small business and fintech, says the joint venture with HSBC will support global commerce with “a new generation of financial services that doesn’t just address the need of the individual businesses.”

“We think digitally connecting global trade is going to be the enabler for a new generation of financial services that doesn’t just address the need of the individual business,” he adds, “but helps enable the trade relationship by making it more efficient, predictable and profitable for either party.”

The joint venture is due to launch early next year. Syvlest says it will seek to offer new financial services to other commerce platforms and venues in addition to Tradeshift.

As part of the the joint venture agreement, HSBC will provide Tradeshift with $35 million in funding and join Tradeshift’s board. The agreement is also expected to raise another $35 million to reach “a minimum of $70 million” from HSBC and other investors. Founded in 2009, Tradeshift has now raised a total funding of $1.1 billion, according to Crunchbase.

Paul Demery is a freelance writer specializing in ecommerce trends. He is based in Savannah, Georgia. Follow him on Twitter @pdemery.

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