Tranch, a London, UK-based buy-now-pay-later (BNPL) platform for SaaS sellers and services providers, raised $100 million in a seed funding round in the form of equity and debt.
The round was led by Soma Capital and FoundersX, in addition, several US and UK fintech founders participated in the round.
The funding round includes a credit facility from Clear Haven Capital Management. Further, Tranch’s existing investors include Global Founders Capital and Y Combinator.
The company will use the funds to grow the team in Tranch’s New York office and expand the ‘Pay with Tranch’ checkout across multiple industry verticals.
Philip Kelvin, Co-founder & CEO of Tranch, comments, “Since securing our pre-seed funding and completing the Y Combinator programme, the total value of invoices we’re handling every month has increased tenfold. Traction is growing fast because suppliers and business buyers simply understand and like what Tranch can do for them. Against this challenging macroeconomic backdrop, buyers and suppliers must ensure they can optimise their working capital cycle, and B2B BNPL is a commonsense way to achieve that. With our new investors and substantial credit facility in place, we’re in a great position to continue our growth in the US market out of our New York office so that every SMB that needs it can ‘pay with Tranch’ – flexibly and on their own terms.”
After beta-launching in the UK, Tranch was accepted into the Y Combinator accelerator and launched in the US. As per the company’s claims, it has spread out millions of dollars of invoices across multiple verticals in the services and SaaS industries.
Company: Tranch, Inc.
Round: Seed Round
Funding Month: January 2023
Lead Investors: Soma Capital and FoundersX
Company Website: https://tranch.com/
Software Category: B2B buy-now-pay-later (BNPL) platform
About the Company: Founded in 2021 by Beau Allison and Philip Kelvin, Tranch is a B2B buy-now-pay-later (BNPL) platform enabling SaaS and services providers to be paid upfront and offer their customers flexible payment options for up to 12 months. Through the company’s ‘Pay with Tranch’ payment method at checkout, providers, such as law firms and marketing agencies, can offer an alternative way for their end customers to pay for contracts worth up to $500,000. Tranch is on a mission to transform how businesses pay for large invoices, from SaaS and cloud to professional and marketing expenses.