FinTech Zilch secures £100m debt finance ahead of its public listing

By Gloria Methri

British FinTech Zilch has secured £100 million in debt financing ahead of its much-anticipated public listing.

Zilch, which offers buy now pay later (BNPL) services subsidized by ads, said it will use the funds to launch new products for a “broader base of customers”.

The securitisation debt deal was arranged by Deutsche Bank.

Zilch CEO and Co-Founder Philip Belamant said, “With this new securitization, 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,” he added.

In under four years, Zilch has amassed over 4 million customers and is now processing more than 10 million monthly payments. The platform gives customers a reward-earning debit and zero-interest instalment offering in one.

Zilch says it generated over £2.5 billion in commerce and saved its customers more than £450 million in fees and interest through its ad-subsidization model.

Hugh Courtney, Chief Financial Officer of Zilch, said the securitization represents a “major milestone as we work towards an IPO in the future.”

“We are excited to announce our entry into the securitization market. Optimizing our capital structure and pricing is key to providing our customers with more flexible ways to pay. Deutsche Bank really leant in to find a bespoke solution to match our uniquely capital-efficient model,” he said

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