Tranched secures 3.4 million US dollars

With new funding, the fintech aims to simplify asset-based financing with blockchain technology and expand globally

London, November 12, 2024 - London-based fintech startup Tranched has raised $3.4 million in a funding round. The round was led by Speedinvest, with participation from Blockwall, Kima and OVNI Capital, and through a16z's Crypto Startup Accelerator (CSX) program. The funds are intended to drive the platform's growth and support its international market entry outside Europe.

Tranched business model

Tranched is developing a platform for asset-based financing based on blockchain technology. This platform automates the structuring and settlement of loan packages in order to convert them into securities. With this technology, Tranched aims to revolutionize the previously very cost-intensive and complex processes of securitization and significantly reduce transaction costs for companies and investors. According to the company, fees and processing costs can be reduced by up to 90 percent.

With the Tranched solution, financial receivables are mapped in real time on the blockchain and managed automatically. Through the use of smart contracts, different seniority and risk classes of investors are served, which facilitates access to asset-based investments and could increase liquidity in this asset class.

The funding will enable Tranched to expand its services to lenders, funds, asset managers and banks worldwide. The aim is to attract not only the European but also the international financial sector to its digital solution. Tranched sees great potential for its blockchain-based solution, particularly in a global securitization market estimated at over 12 trillion euros.

Comments on the round

Michael Elalouf, co-founder of Tranched, explains that lenders often lose significant portions of their revenue due to third-party fees and complex structuring processes. Tranched simplifies these processes, creating value for lenders and their customers. This particularly affects small businesses and consumers, who can benefit from fast, transparent and more cost-effective loan offers.

According to Clément Larrue, also co-founder, asset-based financing offers a low-risk diversification opportunity for institutional investors. Nevertheless, implementation remains a challenge due to complexity and lack of liquidity. Tranched wants to overcome these obstacles with the help of blockchain and smart contracts and create a use case for tokenization.

Speedinvest partner Olga Shikhantsova emphasizes that Tranched provides a tool for fintechs to secure financing more efficiently and thus promote the growth of these young companies. Especially in times when innovative credit and financial products are increasingly in demand, Tranched could make an important contribution to the further development of the financial market.