BNPL platform for SaaS sellers and services providers, Tranch, has raised $100 million in seed equity and debt funding to bring payment flexibility to a wider pool of B2B customers.
The funding round was led by Soma Capital and FoundersX, and included participation from several US and UK fintech founders which also includes a credit facility from Clear Haven Capital Management.
Tranch transformed invoice payments for both suppliers and customers
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.
The platform is bringing a level of flexibility and choice to the B2B market that significantly improves cash flow management for both suppliers and customers.
Philip Kelvin, Co-founder & CEO of Tranch, comments: “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.
Aneel Ranadive, Founder, Soma Capital: “Tranch is leading the way to open up B2B flexible payment options beyond the e-commerce and marketplace sectors. With Tranch, payments no longer have to be a hurdle but an enabler to business growth.”
Mark Simmer, Managing Partner, Clear Haven Capital Management: “We’re excited to partner with Philip and the expanding Tranch team as they rewrite the way businesses pay for their SaaS and services invoices. We look forward to supporting them with capital to achieve their next stage of growth and help more businesses across the US make better payment choices.”
The Problem with Traditional Invoice Payments
Businesses spend over $29 trillion on invoice payments in the US every year. Moreover, most invoices are payable within 10 to 30 days, which puts significant pressure on both supplier’s and customers’ working capital alike.
In a challenging macro-economic environment where over 40% of B2B transactions are still settled by check and nearly 50% of B2B invoices are overdue, Tranch is bringing to the B2B market a level of flexibility and choice that significantly improves cash flow management for both suppliers and customers.
With Tranch, 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
Proceeds of the investment will be used to grow the team in Tranch’s New York office and expand the ‘Pay with Tranch’ checkout across multiple industry verticals.