Zilch Achieves £100m Revenue Milestone in Just Four Years
Zilch, the world's first ad-subsidised payments network (ASPN), has announced its transition to profitability and a revenue run rate exceeding US$130m (£100m) within just four years of launching its consumer payment platform.
The company's rapid ascent to profitability places it in the same league as European fintech giants such as Revolut, Starling Bank and Monzo, all of which reported similar revenue figures within a three to five-year timeframe.
Zilch: Significant growth rate
Zilch's achievement is particularly noteworthy when compared to industry averages. Data suggests that the typical tech company in the US takes 8-10 years to breach the US$100m revenue threshold, while in Europe and the UK, this milestone often requires 15 and 17 years respectively.
Philip Belamant, CEO and co-founder of Zilch says: “This milestone fundamentally changes the game for us. Profitability is something that a lot of fast-growing businesses are struggling to achieve, and I am hugely proud of the team for reaching this mark, ahead of plan.”
Philip pointed out that Zilch's path to profitability has been characterised by growth rather than cost-cutting measures, which have been common among its peers.
“While many have cut their way to profit, we've doubled our revenue year on year, expanded our team, saved our 4 million customers over US$500m in fees and interest costs, and generated over US$3bn in new sales for merchant partners through our ad-subsidised payments network," he adds.
Zilch has differentiated itself by owning the customer relationship, pioneering regulation and generating real credit profiles for its users. This strategy has allowed the company to create tangible value for customers in ways that competitors have struggled to match.
Zilch: Using AI the right way
A key factor in Zilch's rapid growth has been its leveraging of artificial intelligence to unlock the potential of four years of first-party consumer data.
This approach has enabled the company to offer more precise, personalised offerings to its users. The depth of understanding this provides has allowed Zilch to convert sales for advertisers up to 10-20 times more effectively than traditional search and social platforms.
This enhanced conversion rate has had a snowball effect on the company's growth. As customers engage more frequently with the Zilch app, major merchants are increasingly switching their advertising budgets to Zilch's ad-subsidised payments network.
This, in turn, fuels better deals, discounts and subsidies for customers, creating a virtuous cycle of growth and engagement.
The announcement of Zilch's profitability coincides with the appointment of Mark Wilson to its board. Mark, the former CEO of Aviva and AIA and a current member of BlackRock's Board of Directors, brings a wealth of experience in global financial services to the company.
Mark expresses enthusiasm about joining Zilch at this critical juncture: “Under Philip's visionary leadership, Zilch is transforming consumer finance with an innovative and responsible approach that lowers customer finance costs and fills a fast-growing need in society.
“I look forward to working alongside the Board to further help Zilch steer its path toward sustainable success as a category leader.”
Despite its current achievements, Phillip maintains a grounded perspective on Zilch's journey: “We're hugely optimistic about the future, all the while recognising that this is our day one and it's all ahead of us.”
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