Britain's Alan Mackin was beaten 6-1 6-3 by Marcos Baghdatis of Cyprus in the first round of the Davidoff Swiss Indoors tournament in Basel on Tuesday.
The 24-year-old Scot, who played in Britain's Davis Cup whitewash by Switzerland last month, is yet to record an ATP victory in 12 attempts.
Mackin secured a lucky loser place in the main draw of the event after Spain's Rafael Nadal withdrew.
Juan Carlos Ferrero and Fernando Gonzalez had straightforward wins.
Third seed Ferrero beat Filippo Volandri 6-2 6-4, and fourth seed Gonzalez Andreas Seppi saw off 7-6 (7-3) 6-3.
"I felt pretty good out there and I'm playing pretty well indoors at the moment," said Ferrero, who recently made the final in Vienna.
Top seeds Guillermo Coria and David Nalbandian are both due to play their opening matches on Wednesday, as is sixth seed Tim Henman who takes on fellow Briton Andy Murray.
Baghdatis now faces German Tommy Haas, who beat compatriot Alexander Waske.