Zilch Raises £100m Financing Deal to Fuel Expansion

Zilch, the world’s first ad-subsidised payments network (ASPN), has announced a key £100m (US$126.5m) securitised debt financing injection. 

Arranged by Deutsche Bank, Zilch says this fresh financing injection will help it grow its businesses and accelerate its ability to create and launch new products for a broader customer base. 

The fintech’s funding comes after its remarkable four-year growth journey, amassing 4 million customers and processing over 10 million monthly payments today. 

The Zilch platform has, in that time, generated over £2.5bn (US£3.1bn) in commerce, saving its customers more than £450m (US$569m) in fees and interest through its ad-subsidised model, as it works to eliminate high consumer credit costs. 

Zilch offers customers an integrated reward-earning debt and zero-interest instalment in one.

Zilch CEO and Co-Founder Philip Belamant says: “We’re thrilled to announce the financing as it marks a transformative step in Zilch’s journey. 

“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 and, in turn, hundreds of millions in savings and subsidies to our customer base.

“This partnership not only provides an excellent opportunity for debt investors to join in Zilch’s success, but it also enables us to accelerate the rollout of our feature roadmap which will broaden wallet and market share. 

“We’re adding over 100,000 new customers every month, doubling revenue year over year, and this deal will allow us to build upon that momentum.”

Zilch: A rapid growth journey

Zilch has carved a unique space for itself in the Buy Now, Pay Later (BNPL) space, reaching double-unicorn status in just 14 months since its launch. 

Since then, it has gone from strength to strength, partnering with Experian to adopt more responsible BNPL criteria, and, more recently, expanding its deal with AWS to charge its AI and ML engine.

Zilch Co-founder and CEO, Philip Belamant, recently discussed its recent £250m (US$316m) securitisation debt structure, a round also led by Deutsche Bank, in an interview with Bloomberg, which you can see below. 

Speaking on Zilch’s entry into the securitisation market, Hugh Courtney, Chief Financial Officer of Zilch, adds: “We are excited to announce our entry into the securitisation market. 

“Optimising our capital structure and pricing is key to providing our customers with more flexible ways to pay. Deutsche Bank really leaned in to find a bespoke solution to match our uniquely capital-efficient model.

“The financing sets an initial benchmark for us to price our debt issuance in the future, allowing us to competitively match the pricing and terms as the business continues to develop. 

“Finally, the securitisation represents a major milestone as we work towards an IPO in the future.”

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