US-based B2B invoice automation and payments platform Tranch has been acquired by Elite, a financial solutions provider for law firms, to help address payment “inefficiencies” in the legal sector.
Tranch, which is based out of London and New York, was founded in 2021 by Philip Kelvin and Beau Allison, offering invoice management and turnkey payment solutions for law firms and their clients.
Its offering is designed to increase cashflows by improving speed and efficiency across invoice delivery, billing and collections, enabling law firms to streamline and automate their payment processes.
Tranch uses Open Banking data to support more accurate forecasting of firms’ account receivables, rather than relying only on business credit reporting, which can be outdated.
In January 2023, Tranch raised $100 million in seed equity and debt funding to support the growth of its US team and expand ‘Pay with Tranch’ checkout across multiple industry verticals.
The funding round was led by New York-based Soma Capital and FoundersX, while additional institutional investors also participated, including several US and UK fintech founders, and existing investors Global Founders Capital and Y Combinator.
Among Tranch’s electronic payment offerings are ‘Pay Now’ via a bank transfer managed through FedNow and the Real-Time Payment Network, and ‘Pay by Card’, which includes virtual card terminals for billing teams.
Tranch’s ‘Pay Later’ allows law firm clients to spread out their payments over time, giving clients greater flexibility and providing day one cashflow to firms.
“At Elite, our focus is on providing law firms the SaaS solutions they need to lead their business into the future with confidence, and help them gain operational efficiencies, optimize resource allocation and improve expense management,” said Mark Dorman, chief executive officer of Elite.
“Tranch is an innovative leader that is revolutionizing payment processes for law firms, and we look forward to welcoming Philip, Beau and the entire Tranch team to Elite.”
Dorman added: “By embedding Tranch’s products within our portfolio of SaaS solutions, we will offer our customers greater choice and flexibility in managing their work-to-cash process, which will help law firms reduce payment delays, increase cashflows and, ultimately, boost profitability.”
Kelvin, Tranch’s chief executive officer, said: “Investments in technology and innovation by law firms have lagged historically in the area of financial operations, and our data reveals there are still significant inefficiencies that have not yet been solved from when an invoice is issued to payment, leaving a large opportunity for improvement across firms of all sizes.”
He added: “In 2024, Tranch more than tripled its payment volume with many of the largest global law firms, including Elite customers, to help facilitate easier and faster payments through automation and innovation.
“We are excited to join Elite as we scale our capabilities further and continue our rapid, product-led innovation.”
The financial terms of the acquisition have not been disclosed.
