B2B BNPL platform Tranch raises $100m in debt and equity
London and New York based buy now, pay later (BNPL) fintech Tranch has secured $100 million in seed equity and debt funding.
Tranch raises $100m in debit and equity
It is understood that $5 million have been raised in equity while the rest – $95 million – have been taken on as debt.
The funding round was led by Soma Capital and FoundersX with additional investors participating including Global Founders Capital (an existing Tranch backer).
Clear Haven Capital Management provided the credit facility.
Founded in 2021, Tranch offers a business-to-business (B2B) BNPL platform that enables Software-as-Service (SaaS) and professional services providers (such as law firms and marketing agencies, for example) to be paid upfront and offer their customers flexible payment options up to 12 months, for the contracts worth up to $500,000.
The latest funding will be used for the US expansion, the start-up says, where it estimates businesses spend over $29 trillion on invoice payments every year.
Tranch says it “has already spread out millions of dollars of invoices across multiple verticals in the services and SaaS industries”. In the six months to the end of 2022, monthly invoices going via its platform increased tenfold, it claims. Among early adopters are New York-based procurement platform Tropic and international law firm Goodwin Procter LLP.
Tranch co-founder and CEO Philip Kelvin says that against a 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.”
Last May, Tranch landed $4.25 million in a pre-seed debt and equity round, led by Flash Ventures and Global Founders Capital, with the debt facility provided by Columbia Lake Partners.
