Tranch Raises $5M to Scale Buy Now, Pay Later Platform for B2B Invoices

The NYC and London-based startup also received a $95 million credit facility.

Written by Jeff Rumage
Published on Jan. 25, 2023
Tranch Raises $5M to Scale Buy Now, Pay Later Platform for B2B Invoices
Tranch co-founders Philip Kelvin, left, and Beau Allison. | Photo: Tranch
Tranch co-founders Philip Kelvin (left) and Beau Allison (right). | Photo: Tranch

The current economic uncertainty in the marketplace has prompted tech companies to think about the best uses of their working capital.

Tranch, a New York- and London-based startup that graduated from Y Combinator last year, is bringing financial flexibility to these tech companies with its buy now, pay later platform in the business-to-business space. 

By offering a “Pay With Tranch” option at checkout, B2B vendors such as law firms and software companies can get paid immediately, while buyers get extra time — two to 12 months — to settle invoices up to $500,000. More than 80 percent of the customers who use Tranch’s buy now, pay later product are tech companies, according to Tranch.

Tranch announced Tuesday that it plans to reach a wider swath of customers with the help of a $5 million seed equity round co-led by Soma Capital and FoundersX, as well as a $95 million credit facility from Clear Haven Capital Management. 

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Tranch co-founder and CEO Philip Kelvin said there is a need for innovation in the B2B payment space, where 40 percent of invoices are paid by check.

“Against this challenging macroeconomic backdrop, buyers and suppliers have to ensure they can optimize their working capital cycle, and B2B BNPL is a commonsense way to achieve that,” Kelvin said in a statement. “With our new investors and substantial credit facility in place, we’re in a great position to continue our growth in the U.S. market out of our New York office so that every [small- and medium-sized business] that needs it can ‘pay with Tranch’ — flexibly and on their own terms.”

Tranch has 10 employees, three of which are based on the East Coast. Kelvin and Jack Howard, the company’s head of business development, work out of an office in the West Village.

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