Serai is a tech start-up. It aims to connect small and medium sized manufacturers with component suppliers in different parts of the world. And it is a Hong-Kong based start-up. But it is a wholly owned subsidiary of HSBC.
In one of its first kind of initiative, HSBC Holdings Plc is supporting the launch of Serai. Technically, the subsidiary started working last week. It is in the plan of John Flint, the company’s Chief Executive to invest $15-$17 billion on technology alone by the year 2020.
Serai is an answer to all the business companies who were looking for a medium for knowing other companies. Vivek Ramachandran, the chief executive of Serai said- “Navigating international markets as a small and medium sized company is still a nightmare. And the real pain point is business to business transactions. So, if you have got Facebook for your personal network and LinkedIn for your professional network then you have got Serai for your company.”
Serai is one of its kind because it is the first ever non-banking venture of HSBC. This method would help HSBC Headquarters to make the bulk of their revenues from the Asian Market. It will also help them earn new clients.
The details of the investments in Serai were not disclosed but first Serai would focus on trade banking client network of HSBC. And it would also expand its coverage and include more suppliers and manufacturers.
The reason for starting Serai now is because Global banks are trying to boost their tech investments by transaction banking. This type of tech- financing is good for business, where sellers and buyers have a platform to come together and make a transaction.
Ramachandran, the chief executive of Serai said –“The idea is to create a platform where buyers and sellers come together. You can make connections, and then over time you can access a range of solutions.”
