B2B BNPL platform Tranch secures $100m in funding round

B2B buy now, pay later (BNPL) platform Tranch has raised $100 million in seed equity and debt funding to fund the growth of its US team and expand ‘Pay with Tranch’ checkout across multiple industry verticals.

The BNPL platform for SaaS sellers and services providers was founded in 2021, beta-launching in the UK, before being accepted into the Y Combinator accelerator and launching in the US.

By offering ‘Pay with Tranch’ at checkout, suppliers can get paid upfront, while their customers can settle invoices worth up to $500,000 on terms ranging from two to 12 months.

The funding round was led by New York-based Soma Capital and FoundersX, while additional institutional investors also participated, including several US and UK fintech founders, and existing investors Global Founders Capital and Y Combinator.

The round includes a credit facility from Clear Haven Capital Management.

According to Tranch, more than 40% of B2B transactions are still settled by cheque and nearly 50% of B2B invoices are overdue.

Philip Kelvin, co-founder and CEO of Tranch, (pictured on the left in the main image) said that since securing pre-seed funding and completing the Y Combinator programme, the total value of invoices Tranch is handling every month has increased tenfold.

“Traction is growing fast because suppliers and business buyers alike simply understand, and like, what Tranch can do for them. Against this challenging macroeconomic backdrop, buyers and suppliers have to ensure they can optimise their working capital cycle, and B2B BNPL is a common-sense way to achieve that,” he said.

“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.”

Aneel Ranadive, founder of Soma Capital: “Tranch is leading the way to open up B2B flexible payment options beyond the ecommerce and marketplace sectors.

“Every year SaaS and other service providers, like law firms, marketing agencies and consultancies, generate billions of dollars’ worth of large invoices on terms that don’t work for them or their customers, simply through lack of choice and innovation.

“‘Pay with Tranch’ provides them and their customers with an alternative way to handle payments.”

Main image L-R: Co-founders Philip Kelvin and Beau Allison