Asset-based financing platform Tranched raises $3.4m in pre-seed round

London-based embedded asset-based financing platform Tranched has raised $3.4m (£2.7m) in a pre-seed funding round led by Speedinvest.

The capital raised, including backing from Andressen Horowitz’s crypto startup accelerator programme, will help the platform add additional features to help it expand globally beyond Europe.

Tranched aims to automate manual processes in the €12tn (£9.9tn) global securitisation industry using blockchain technology.

The platform is meant to save lenders, credit funds, asset managers and banks time and money by streamlining processes and increasing transparency. The business has said that it has been able to reduce some of the costs in initial transactions by up to 90 per cent.

Read more: Oaktree: Asset-based funding faces financing void

“Lenders are losing a significant portion of their economics to third-party fees and endless structuring processes. We want to help them claim back that value by simplifying their access to a broader range of financing options,” commented Michael Elalouf, co-founder of Tranched.

“This will ultimately benefit their clients, consumers and small businesses of the real economy, at a time where innovative credit, payment, and embedded finance products are rapidly growing. Our solution is applicable to any finance product. We are here to support any lender, anywhere, and help them scale their operations.”

Olga Shikhantsova, partner at Speedinvest, added: “Ranched represents the tool most fintechs have been dreaming of to attract financing more efficiently to fuel further growth. This will support hundreds of fintechs globally that have been underserved by traditional investors over the last decade.”

Read more: BlackRock sees opportunity for private credit in asset-based financing

Read more: Pimco adds $2bn to asset-based private lending strategy