London-based startup BNPL raises £ 3.5m to provide business payment flexibility

London-based buy-and-pay platform now (BNPL) for business, Tranche comes out invisible after raising £ 3.5 million in equity and debt financing before recharging. The investment was led by Flash Ventures and Global Founders Capital. The circle also included debt from Columbia Lake Partners.

With plans to launch in the US later this year, the BNPL platform has also received support from Y Combinator and will join the YC Summer 2022 cohort this year. The proceeds from the investment will be used to grow the team, as well as to include more suppliers in multiple verticals as the company continues to grow in the UK and US

Companies are losing $ 20 billion a year worldwide payment of premium monthly fees for annual SaaS contracts, which could have been paid in advance and in full if there were no cash flow restrictions.

Founded in 2021 by Philip Kelvin and Bo Alison, the startup aims to eliminate this waste. It allows companies to pay for SaaS and other business services on terms that work for both them and their suppliers.

By offering a tranche payment method, SaaS vendors and other professional and business service providers provide their end customers with an alternative way to pay contracts worth up to £ 250,000. Instead of settling accounts in full within the standard deadline from 30 to 90 days, an end customer who chooses to pay with Tranch can spread the cost of their contracts for six to 12 months.

Philip Kelvin, co-founder and CEO of Tranch, said: “Payment options for important SaaS instruments and other business services have been inflexible so far. Tranche payment solves this huge and costly problem by putting flexibility and choice at the heart of the payment process in a way that works easily and favorably for both suppliers and buyers.

Yash Conspiracy, partner and MD at Flash Ventures said: “B2B BNPL players have so far been largely focused on B2B e-commerce, where ticket sizes are small and lenders rely on standard credit data to make limited credit decisions. Tranch makes the B2B BNPL available for more sophisticated lending requirements, including larger volumes and longer maturities, all of which create an extremely scalable opportunity in the international marketplace through their full range of lending technologies.