London-based fintech Tranch has landed $100m (£81m) in funding to bring its business-focused buy now pay later (BNPL) platform to the US.
Tranch grew to prominence as a UK fintech last year, when the company was brought on to the distinguished accelerator programme Y Combinator on its Summer 2022 cohort.
Since then, the company has established a US presence in the form of a New York office, which is set to expand thanks to the sizeable new investment.
Tranch provides software as a service (SaaS) companies with BNPL financing, meaning clients can break up the associated costs into smaller repayments. Tranch divides purchases of up to $500,000 (£405,000) into BNPL payment plans.
“Against this challenging macroeconomic backdrop, buyers and suppliers have to ensure they can optimise their working capital cycle, and B2B BNPL is a common-sense way to achieve that,” said Tranch co-founder and CEO, Philip Kelvin.
“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.”
The new investment round was led by Soma Capital, along with FoundersX. The round also included a credit facility from Clear Haven Capital Management.
“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,” said Soma Capital founder Aneel Ranadive.
“‘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.”
The company last raised funding in May of last year in a £3.5m pre-seed round.