Tranch Obtains $100 Million In Loan And Equity Funding
Tranch is a platform for SaaS sellers and service providers that lets customers buy now and pay later. It has raised $100 million in seed equity and debt funding.
Soma Capital and FoundersX led the funding round. Founders of fintech companies from the US and UK and other institutional investors also participated in the competition. Clear Haven Capital Management is giving a loan as part of the funding round.
Philip Kelvin and Beau Allison started Tranch in London in 2021. They were previously the CFO and head of engineering at a proptech startup called Trussle, which was bought by US mortgage broker Better HoldCo in July last year.
Using Tranch, SaaS and service providers can be paid upfront while providing flexible payment options to their customers for up to a year. By adding “Pay with Tranch” as a payment option at checkout, businesses like law firms and marketing agencies can give their customers another way to pay for contracts worth up to $500,000.
After a beta launch in the UK, Tranch was accepted into the Y Combinator accelerator and launched in the US. In the six months leading up to the end of 2022, the number of monthly invoices that could be paid in different ways through Tranch’s platform grew by a factor of ten. Service providers like the New York-based procurement platform Tropic and the international law firm Goodwin Procter LLP were among the first to offer a “Pay with Tranch” payment option.
Philip Kelvin, Co-founder & CEO of Tranch, comments:
“Against this challenging macroeconomic backdrop, buyers and suppliers have to ensure they can optimize 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 that the money from the investment will be used to hire more people in Tranch’s New York office and make the “Pay with Tranch” checkout available in more industries.
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