Tranch, a BNPL firm for SaaS sellers and services providers, has raised $100m in seed equity and debt funding.
The round was led by Soma Capital and FoundersX, and saw participation from several US and the UK FinTech founders. The funding round includes a credit facility from Clear Haven Capital Management.
Businesses spend over $29trn on invoice payments in the US every year. Moreover, most invoices are payable within 10 to 30 days, which puts significant pressure on both suppliers and customers’ working capital alike.
Tranch was created to transform these payments for both parties. Suppliers that offer a ‘Pay with Tranch’ checkout get paid upfront, while their customers can settle invoices worth up to $500,000 on terms that suit them, ranging from two to 12 months.
Tranch claims it is bringing to the B2B market a level of flexibility and choice that significantly improves cash flow management for both suppliers and customers and is gaining traction quickly.
Tranch CEO and co-founder Philip Kelvin said, “Since securing our pre-seed funding and completing the Y Combinator programme, the total value of invoices we’re 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 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 so that every SMB that needs it can ‘pay with Tranch’ – flexibly and on their own terms.”
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