UK BNPL Firm Tranch Exits Stealth With $4.2M

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Tranch, a U.K. buy now, pay later (BNPL) platform for SaaS sellers and professional services providers, says it has raised $4.25 million in pre-seed equity and debt funding.

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According to a Monday (May 23) news release, the firm — which just came out of stealth — will use the funding to expand its team and bring more suppliers on board as it prepares to expand into the U.S. later in the year.

The funding round was led by Flash Ventures, with backing by Y Combinator and Columbia Lake Partners.

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Founded in 2021, Tranch says it helps solve a $20 billion-a-year problem: wastage among companies that pay premium monthly fees for annual Software-as-Servce (SaaS) contracts that they could pay for in full if not for cash flow constraints.

“Tranch helps eliminate this wastage, enabling companies to pay for SaaS and other business services on terms that work for both them and their suppliers,” the company said.

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Tranch says it embeds in the sales offerings of SaaS companies and other service providers, who can give customers a “Pay with Tranch” option that lets them purchase contracts worth £10,000 to £250,000 ($12,5000 to $314,000).

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“B2B BNPL players so far have been largely focused on B2B eCommerce, where ticket sizes are small and lenders rely on standard credit data to make limited credit decisions,” said Yash Zaveri, Partner & MD at Flash Ventures.

“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.”

In related news, last week Swedish BNPL provider Treyd raised $10.5 million in a Series A round as it prepared to expand to the U.K. The company provides BNPL services for global supply chains, and pays suppliers while giving companies 120 days to pay off the balance.

Learn more: BNPL B2B Firm Treyd Nets $10.5M to Launch in UK

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Treyd says it chose the U.K. as its base out of the belief that the country is “a leader” that balances “being open for business and protecting consumers,” while also offering robust regulation, data and eCommerce protection.

 

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NEW PYMNTS DATA: THE TRUTH ABOUT BNPL AND STORE CARDS – APRIL 2022

About: Shoppers who have store cards use them for 87% of all eligible purchases — but this doesn’t mean retailers should boot buy now, pay later (BNPL) options from checkout. The Truth About BNPL And Store Cards, a PYMNTS and PayPal collaboration, surveys 2,161 consumers to find out why providing both BNPL and store cards are key to helping merchants maximize conversion.



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