Tradeshift exits HSBC SemFi embedded invoice finance venture

Tradeshift has exited its equity position in SemFi, the embedded-finance venture it established with HSBC less than two years ago to deliver invoice finance and payment products through business-to-business marketplaces.

Companies House records show that HSBC SemFi filed a reduction in issued share capital and share premium on 22 July, supported by a solvency statement dated 20 July. The company remains active and registered at HSBC’s Canary Wharf headquarters.

A review of the filings reported that Tradeshift’s 25% holding was cancelled, with the shares valued at US$8.4m. Compensation is understood to involve SemFi assigning certain intellectual-property rights to Tradeshift. Michael Cowles, Tradeshift’s chief executive, remains listed as a SemFi director.

HSBC launched SemFi with Tradeshift in October 2024. The venture was designed to embed HSBC’s payment, trade and financing products into e-commerce platforms, initially giving UK SME suppliers access to digital invoice finance and virtual-card services within the marketplaces they already used.

The original proposition sought to combine HSBC’s balance sheet and trade-finance capabilities with Tradeshift’s invoicing, accounts-payable and commerce network. SemFi itself was structured as a technology company rather than a bank, with customers onboarded and financed by HSBC.

The ownership change follows SemFi’s first reported accounting period. Its accounts showed a pre-tax loss of US$21m between incorporation in September 2024 and the end of 2025, against approximately US$1.1m in revenue. The capital reduction filings include the required declaration that the company can meet its liabilities as they fall due.

There has been no announcement that SemFi will close, and its Companies House status remains active. The development should therefore be viewed as an ownership restructuring rather than the confirmed abandonment of HSBC’s embedded-finance strategy.

Nevertheless, Tradeshift’s departure raises questions about how the venture will develop without its founding technology partner and marketplace network. It also illustrates the challenge facing bank-fintech ventures: embedding finance may offer substantial distribution potential, but building the technology, integrations and transaction volumes required to reach profitability can demand significant investment before revenues mature.