Buy now, pay later (BNPL) startup Tranch has secured 3.5 million British pounds (about $4.4 million) in funding and partnered with cloud-based FinTech Yobota to drive fast and flexible payments to businesses, according to a company press release.
Tranch embeds the sales journeys of Software-as-a-Service (SaaS) and other providers to offer businesses the option of spreading any expense across time while managing it from a single platform, the release stated. The startup is striving to be a one-stop platform that equips organizations with the solutions they need to prioritize growth spending without giving up necessary tools, per the release.
With Yobota’s flexible architecture and application programming interface (API) capabilities, Tranch is striving to meet the expectations of complex customer journeys in the U.K., according to the release. The firm’s Pay with Tranch solution provides suppliers with a way to offer their end customers the flexibility of spreading payments over time while ensuring that they are paid upfront in a shorter time.
Tranch Co-Founder and CEO Philip Kelvin said in the release Yobata’s “flexible modularity” offers both “freedom and support” to build what’s needed with much less work on the development side.
See also: How BNPL Is Shaping Consumer Buying Behavior
Yobota Head of Commercial Ion Fratiloiu said in the release the integration of Tranch is the start of a “powerful partnership” that will set off a “B2B eCommerce revolution.”
“Historically, the payment experience for large expenses has been a huge hindrance for the growth of countless firms, so it is fantastic to see that Tranch is stepping up to the task of bringing BNPL to a much wider pool of businesses with Yobota at its side,” Fratiloiu said in the release.
Tranch’s pre-seed equity and debt funding was led by Flash Ventures and Global Founders Capital, including a debt facility from Columbia Lake Partners, IBSIntelligence reported.
Digital bank Chetwood Financial acquired Yobota in March to expand its Banking-as-a-Service (BaaS) operations. The two firms had previously collaborated. Yobota remained operating as a separate brand under the Chetwood umbrella, with Yobota’s current partners and customers not affected by the deal.
Read more: Digital Bank Chetwood Acquires Yobota to Expand BaaS
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