Tranch, a London-headquartered Buy Now Pay :ater (BNPL) platform for SaaS sellers and professional services providers, is ready now to come out of stealth, having secured £3.5 million in capital via a pre-seed equity and debt funding round.
The investment round has reportedly been led by Flash Ventures, the pre-seed investor behind firms such as Spenmo, Everstox and Voly, and Global Founders Capital.
As mentioned in the update, Tranch is backed by Y Combinator and will be joining YC’s Summer 2022 cohort as the startup gets ready to launch operations in the US later in 2022. The round includes a debt facility from Columbia Lake Partners.
Tranch combines traditional credit reports with Open Banking in order to offer a way for suppliers to provide their end-clients with flexible payment terms on contracts valued at £10,000 to £250,000, while they receive payments upfront, and a lot faster.
Rather than settling invoices in full within a standard 30 to 90-day term, an end-client that decides to ‘Pay with Tranch’ is able to spread the cost of their contracts over 6 to 12 month periods.
Tranch was established in London last year by Philip Kelvin and Beau Allison, ex- CFO and head of engineering respectively of Proptech Trussle, which had been acquired by US mortgage broker Better Hold Co in July 2021.
Kelivin remarked:
“My time as a scaleup CFO made me realise just how inflexible payment options can be for crucial SaaS tools and other business services, and how detrimental this lack of choice and payment ownership can be on thousands of companies. ‘Pay with Tranch’ solves that huge and costly problem, by putting flexibility and choice at the heart of the payments process in a way that works simply and favourably for both suppliers and buyers.”
He stated that the proceeds of the investment will be channeled towards expanding the professional team, and onboarding more suppliers across verticals as the firm continues its growth in the United Kingdom and then expands operation to the US later in 2022.