Tranch, a buy now, pay later platform for SaaS sellers and services providers, has raised $100 million in seed equity and debt funding.
The funding round was led by Soma Capital and FoundersX. Additional institutional investors participated in the round, including several US and UK fintech founders. The funding round includes a credit facility from Clear Haven Capital Management.
Tranch was founded in London in 2021 by Philip Kelvin and Beau Allison, former CFO and head of engineering respectively of proptech startup Trussle, which was acquired by US mortgage bropker Better HoldCo in July last year.
Using Tranch, SaaS and services providers can be paid upfront while offering their customers flexible payment options up to 12 months. By offering a ‘Pay with Tranch’ payment method at checkout, providers, such as law firms and marketing agencies, are able to offer an alternative way for their end-customers to pay for contracts worth up to $500,000.
After beta-launching in the UK, Tranch was accepted into the Y Combinator accelerator and launched in the US. In the six months to the end of 2022, monthly invoices spread into flexible payments via Tranch's platform increased tenfold. Early service providers offering a ‘Pay with Tranch’ payment option include New York-based procurement platform Tropic and international law firm Goodwin Procter LLP.
Philip Kelvin, Co-founder & CEO of Tranch, comments: “Against this challenging macroeconomic backdrop, buyers and suppliers have to 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."
He says the proceeds of the investment will be used to grow the team in Tranch’s New York office and expand the ‘Pay with Tranch’ checkout across multiple industry verticals.