Seed24 January 2023

Tranch secures £81.1m seed funding led by Soma Capital to scale its United States operations

The seed financing was led by Soma Capital and FoundersX with additional backing from Clear Haven Capital Management.

£81.1MSeed

Tranch operates a business to business buy now pay later platform that allows software and service providers to receive upfront payments while offering their customers flexible terms.

Tranch has secured £81.1m in a seed funding round comprising equity and debt to scale its operations in the United States. The financing was led by Soma Capital alongside FoundersX and included participation from Clear Haven Capital Management, which provided a credit facility. Existing backers Global Founders Capital and Y Combinator also participated in the round. The capital will be directed towards team expansion at the New York office and broadening the checkout service across various industry verticals.

From the founder

"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."

Philip Kelvin

Co-founder & CEO at Tranch

Investor perspective

"Tranch is leading the way to open up B2B flexible payment options beyond the ecommerce and marketplace sectors. Every year SaaS and other service providers like law firms, marketing agencies and consultancies generate billions of dollars worth of large invoices on terms that don’t work for them or their customers, simply through lack of choice and innovation. ‘Pay with Tranch’ provides them and their customers with an alternative way to handle payments. With Tranch, payments no longer have to be a hurdle but an enabler to business growth."

Aneel Ranadive

Founder, Soma Capital