Tranch, a buy now, pay later platform catering to SaaS sellers and service providers, has successfully secured $100 million in seed equity and debt funding.
The funding round was spearheaded by Soma Capital and FoundersX, with participation from various institutional investors, including several fintech founders from the US and UK. Notably, the round also includes a credit facility from Clear Haven Capital Management.
Founded in London in 2021 by Philip Kelvin and Beau Allison—who previously served as CFO and head of engineering, respectively, at the proptech startup Trussle, which was acquired by US mortgage broker Better HoldCo in July of last year—Tranch is already making waves in the industry.
The platform enables SaaS and service providers to receive upfront payments while offering their customers flexible payment options of up to 12 months. By incorporating the ‘Pay with Tranch’ payment method at checkout, providers such as law firms and marketing agencies can present an alternative solution for their end-customers to finance contracts up to $500,000.
Since its beta launch in the UK, Tranch has gained traction after being accepted into the Y Combinator accelerator, and it has since expanded into the US market. In the six months leading to the end of 2022, there was a tenfold increase in the use of flexible payments via Tranch’s platform for monthly invoices. Notable early adopters of the ‘Pay with Tranch’ option include New York-based procurement platform Tropic and international law firm Goodwin Procter LLP.
Philip Kelvin, Co-founder & CEO of Tranch, states, “In this challenging macroeconomic environment, it’s crucial for buyers and suppliers to optimize their working capital cycle, and B2B BNPL is a sensible solution. With our new investors and significant credit facility, we are well-positioned to continue our growth in the US market from our New York office.” He adds that the investment proceeds will be utilized to grow Tranch’s team in New York and to expand the ‘Pay with Tranch’ checkout across various industry sectors.