HSBC's Serai Platform Halts Operations

HSBC has pulled the plug on Serai, the Hong Kong-based trade platform it launched three years ago, citing a failure to build a commercially viable business.

Serai launched in 2019, the brainchild of Vivek Ramachandran, who was then global head of growth and innovation at HSBC and who became the wholly-owned subsidiary's CEO.

It began life as a lending platform for SMEs based in Hong Kong but the political turmoil on the island and Covid-19 contributed to a change of strategy, which saw Serai become a B2B platform for buyers and suppliers to connect.

A further pivot saw the startup begin focusing on connecting SME apparel makers with component suppliers worldwide.

Despite the struggles, HSBC continued to invest in the project, pumping around US$70 million into Serai, financing a 100-person workforce.

However, in May Ramachandran told employees that the firm was being put under review by HSBC. Shortly after, he left the company, returning to the bank in a senior role.

Now, a message on the Serai website says: "We regret to inform you that Serai will be winding down all operations.

"Despite a huge amount of progress made by the team, it has proven difficult to build a commercially viable business. As a result, we’ve made the difficult decision to close our doors."