Tuesday, June 28, 2022
Home Tech News Tranch raises £3.5m to bring BNPL to SaaS

Tranch raises £3.5m to bring BNPL to SaaS

Tranch, a startup providing buy now pay later (BNPL) services for software sellers, has emerged from stealth and raised £3.5m in a pre-seed round led by Flash Ventures.

London-based Tranch will also join the prestigious US tech accelerator Y Combinator’s Summer 2022 cohort.

Tranch will use the capital – which came as combination of debt and equity funding – for hiring, onboarding suppliers and international expansion. The startup is planning to launch in the US later this year.

While BNPL has exploded in popularity among consumers thanks to the likes of Klarna and Zilch, Tranch is aiming its service at businesses.

Specifically, Tranch is providing a BNPL platform for software as a service (SaaS) sellers and professional service providers. It aims to remove the additional cost associated with paying for a subscription monthly, compared to paying upfront.

Sellers can use Tranch as an upfront payment method for contracts between £10,000 to £250,000. Buyers can spread their payments over a period as long as 12 months.

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

Funding also came from Y Combinator and includes a debt facility from Columbia Lake Partners.

Tranch was founded in 2021 by Philip Kelvin and Beau Allison. Previously Kelvin was the CFO and Allison the head of engineering of UK proptech Trussle.

“We’re excited to see Tranch making B2B BNPL accessible to more complex lending demands involving larger volumes and longer durations, all of which creates a hugely scalable international market opportunity through their full lending tech stack,” said Yash Zaveri, partner and MD, Flash Ventures, who joins Tranch’s board.

Tranch is one of a growing number of BNPL firms catering for businesses. The startup joins Swedish B2B BNPL firm Treyd, which exclusively shared its plans for a UK launch with UKTN earlier this month.

Competition in the consumer-facing BNPL space has been heating up, while UK regulators are in the process of developing new rules aimed at protecting consumers. Earlier this year, the FCA told some BNPL firms to change ‘unclear’ terms.

- Advertisment -

Most Popular

What causes long COVID? Canadian researchers think they’ve found a key clue

Olympic gold medallist Alex Kopacz may be used to being out of breath when pushing a bobsled, but last year after he was hospitalized...

Nasa finds ‘double crater’ on Moon caused by mystery rocket crash

So far, no country has taken responsibility for the rocket and the resulting collision (Picture: Nasa)A mystery rocket has slammed into the moon leaving...

Why US women are deleting their period tracking apps

Why US women are deleting their period tracking apps Even before the supreme court decision to overturn Roe v Wade, the trend to ditch...

Innovate UK funding boost for Riverlane in quantum computing push

Innovate UK, the British state investment agency, has awarded a £500,000 grant to Cambridge-based Riverlane and California-based Rigetti Computing to solve the issue of...