Zilch advances towards IPO with £100m financing

A woman's silhouette holds a smartphone with the Zilch logo in the background.
Editorial credit: rafapress / Shutterstock.com

Zilch, the world’s first ad-subsidised payments network (ASPN), has announced a significant £100m securitised debt financing, facilitated by Deutsche Bank (DB).

The financing will enable Zilch to expand its operations, as well as accelerate the development and launch of new products aimed at a wider customer base.

Philip Belamant, Co-Founder and CEO at Zilch, said: “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.”

In under four years, Zilch has grown rapidly, acquiring over 4 million customers and processing more than 10 million monthly payments. Zilch combines a reward-earning debit and zero-interest instalment service in a single offering. 

As per the platform’s numbers, it has processed over £2.5bn in transactions and saved customers over £450m in fees and interest through its ad-subsidisation model, aiming to reduce the costs associated with consumer credit.

Hugh Courtney, Chief Financial Officer of Zilch, said: “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 leant 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.”

Last year, Zilch highlighted the critical role of addressing the needs of the five million credit-invisible individuals in the UK, following a report by the Daily Telegraph that revealed engagement with Buy Now Pay Later (BNPL) services could positively impact the credit scores of these individuals.