B2B BNPL: Tranch raises $100m Seed round

B2B Buy Now Pay Later fintech Tranch has raised $100m of new funding to expand its SaaS-based loans into the US market.

Tranch emerged from stealth in early 2022. Its own shade of a BNPL helps companies wanting to buy software as a service (SaaS) at upfront cheaper annual rates while still paying in instalments. 

It does this via deals with the sellers of the SaaS products who then in turn offer BNPL options to their clients with loans up to $500,000 over 12 months available.

Those offering a ‘Pay with Tranch’ payment option include New York-based procurement platform Tropic and international law firm Goodwin Procter LLP.

The company says invoice volumes it paid increased 10x over the second half of 2022.

Founded by two fintech veterans Philip Kelvin and Beau Allison in 2021, Tranch last raised a pre-seed round totalling £3.5m ($4.25m). 

This new round is mostly in the form of debt ($95m) alongside $5m of equity capital, showing how the company has scaled its appeal to investors after one year of operating publicly. 

Soma Capital, who have backed the likes of Deel, RazorPay and Rippling) and FoundersX, who have backed Jeeves and Salt Security. 

The credit facility is provided by Clear Haven Capital Management. 

“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, said Philip Kelvin, co-founder & CEO of Tranch.

“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.”