Tranch Raises $100M to Expand B2B BNPL for Service Providers

Tranch has raised $100 million in a seed round to expand its B2B buy now, pay later (BNPL) platform.

The firm will use the new capital to bring its solution to more software-as-a-service (SaaS) sellers and service providers by growing its team in the U.S. and expanding to more industry verticals, Tranch said in a Tuesday (Jan. 24) press release.

“Traction is growing fast because suppliers and business buyers alike simply understand and like what Tranch can do for them,” Tranch Co-founder and CEO Philip Kelvin said in the release. “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.”

This announcement comes at a time when there has been a spate of funding rounds and partnerships focused on bringing BNPL to B2B payments.

As PYMNTS reported Wednesday (Jan. 18), headlines seen over recent days include Mondu adding $13 million to its Series A funding round and raising $56 million; Actyv.ai raising $12 million as part of a Pre-Series A funding round; Hokodo and Lemonway partnering; and Santander, Allianz Trade and Two bringing their own BNPL solution to larger enterprises.

By embracing BNPL as a payment option, the supplier gets the cash they need, and the buyer gets predictability in the timing of cash outlies through deferred payments.

B2B spend is probably one of the biggest financial services markets in the world, and it happens in-store, online and across borders, Amount Executive Vice President Sam Graziano told PYMNTS in an interview posted in July 2022.

“Ultimately, what businesses want is cash flow flexibility,” Graziano said at the time. “That can come in the form of what looks like a BNPL format similar to the consumer space.”

With the “Pay with Tranch” checkout, suppliers get paid upfront while their buyers can settle invoices of up to $500,000 over two to 12 months, according to the press release.

Tranch’s seed round was led by Soma Capital and FoundersX. Soma Capital Founder Aneel Ranadive said in the release that because there has been a lack of choice, SaaS and other service providers generate large invoices on terms that don’t work for them or their customers.

“‘Pay with Tranch’ provides them and their customers with an alternative way to handle payments,” Ranadive said. “With Tranch, payments no longer have to be a hurdle but an enabler to business growth.”

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