B2B Buy Now, Pay Later platform for SaaS sellers, Tranch , has raised USD 100 million equity and debt in seed funding round led by Soma Capital and FoundersX . The credit facility was provided by Clear Haven Capital Management, with the funds being used to bring payment flexibility to a wider pool of B2B customers.

SOMA Capital is the funding institution behind profitable start-ups like Deel, Razor Pay, and Rippling, while FoundersX has previously invested in Jeeves and Salt Security. At the same time, Global Founders Capital and Y Combinator are among the existing investors of Tranch. How is Tranch different? Tranch aims to provide B2Bs a higher level of flexibility when it comes to paying to significantly improve cashflow management for both suppliers and customers.

Suppliers who offer the ‘Pay with Tranch’ option at checkout get paid upfront in full, while their customers can settle invoices worth up to USD 50,000 in instalment payments, ranging from two to 12 months, depending on which option suits them more. Fuelled by global economic turmoil, a pandemic that hit hard, spikes in cost of living and inflation rates across the world, the BNPL sector has developed massively in the past three years, but mainly focused on a B2C model. Companies such as Tranch were founded to further expand the BNPL capabilities to SMEs through a B2B model that provides flexibility, safety, and a regular cashflow for merchants to conduct their daily activities.

In the US, businesses spend almost USD 30 trillion on invoice payments, most of which are payable within 10 to 30 business days, which puts significant pressure on suppliers and customers’ working capital. Tranch was founded to solve the problem for both parties through its BNPL solution. More about Tranch Founded in the UK and launched in 2022, Tranch received a USD 4.

25 million pre-seed funding. After its beta-launching in Europe, the company was accepted into the Y Combinator accelerator and launched in the US, now primarily focusing on the multi-trillion-dollar US B2B invoice market. Since its entrance on the US market, Tranch’s platform has spread out millions of dollars worth of invoices across various verticals in the service and SaaS industries.

At the same time, its monthly invoice volumes increased ten folds between mid-2022 and December 2022, showing that the US market is in need of a facilitator of invoices that will not put additional pressure on small merchants’ cashflows. Tranch will use the USD 100 million investment to further boost its expansion in the US, where more than 50% of the total number of invoices emitted are overdue. .