British Fintech Firm Zilch Secures £100m Debt Financing Deal

British fintech company Zilch has secured a substantial £100 million debt financing deal, with chief executive Philip Belamant hinting at the possibility of the company going public outside of the UK.

The innovative fintech, known for its buy now pay later (BNPL) services subsidised by advertisements, plans to leverage the funds to introduce new products aimed at a broader customer base.

The securitisation debt deal was led by Deutsche Bank, marking a significant milestone in Zilch’s growth trajectory.

“With this new securitisation, we’re poised to triple sales volumes and achieve significant capital efficiencies as we continue to drive billions in commerce to our retail network,” Belamant stated.

He emphasized that the partnership offers a lucrative opportunity for debt investors to participate in Zilch’s success, while also accelerating the rollout of their feature roadmap to expand wallet and market share.

Belamant outlined ambitious targets for the company, including adding over 100,000 new customers each month and doubling revenue year over year.

The company’s growth has been remarkable; in October last year, Zilch was valued at £1.65 billion following an investment from eBay Ventures.

The following month, Zilch reported tripled revenue, reaching £30 million for the year ended 31 March 2023.

Despite this impressive revenue growth, Zilch has yet to report a profitable year.

Achieving profitability has become a top priority, particularly as the company eyes an initial public offering (IPO).

This focus led to the strategic decision to pause its US roll-out and concentrate on domestic growth.

The prospect of Zilch’s IPO is a promising development for London’s public tech sector.

However, in an interview with the Financial Times, Belamant suggested that the company might list abroad if the UK government fails to implement supportive measures for its markets.

He referred to planned market reforms, which include directing pension investments to high-growth companies and offering increased incentives for investors.

“If this all happens, I’m not sure why you wouldn’t want to list on the LSE… But of course, if it doesn’t happen, then we have to take the appropriate decision and that might be to go somewhere else,” Belamant said.

The successful debt financing deal and the potential for a future IPO underscore Zilch’s robust position in the fintech industry and its readiness to adapt to the evolving market landscape.

As the company continues to innovate and expand, all eyes will be on its next moves in the competitive world of financial technology.