Fintech Zilch Secures £100M Financing Deal to Support Expansion Strategy

Zilch, the ad-subsidized payments network (ASPN), announces a key £100 million securitised debt financing arranged by Deutsche Bank (DB).

The financing will enable Zilch to grow its business and “accelerate Zilch’s ability to create and launch new products for a broader base of customers.”

In just under four years, Zilch has achieved steady growth, “amassing over 4 million customers and now processing more than 10 million monthly payments.”

Zilch gives customers a reward-earning debit & zero-interest instalment offering in one.

The platform has already generated “over £2.5 billion in commerce and saved its customers more than £450 million in fees and interest through its ad-subsidization model, as it works to eliminate the high cost of consumer credit.”

Zilch CEO and Co-Founder Philip Belamant said:

“We’re thrilled to announce the financing as it marks a transformative step in Zilch’s journey. 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. 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.”

Hugh Courtney, Chief Financial Officer of Zilch, said:

“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. 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.”

As covered, Zilch’s vision is to eliminate the cost of consumer credit. For good.

Zilch is an enabler of “direct-to-consumer, ad-subsidized payments network (ASPN).”

Today Zilch is enhancing the $50 trillion advertising and payments industries “by merging the very best of debit, credit and savings.”

Zilch provides customers “the freedom to go anywhere in the world (online or offline) and, when they pay, earn up to 5% cashback & rewards on debit payments (‘Pay Now’) or spread interest-free credit repayments over six weeks or three months.”

In the process, Zilch helps customers “build their credit profiles with the major credit agencies.”

In 2023, Zilch launched its proprietary ASPN service, which “allows retailers worldwide instant connection with millions of Zilch’s first-party data, closed loop network of high-intent customers, while offering customers personalized savings, deals and discounts codified to their habitual daily spend.”

In January 2023, Zilch struck a reporting agreement “with the UK’s prime credit reference agencies, transforming the UK lending ecosystem by enabling all adults to build their credit records using interest-free credit rather than high-cost revolving credit products.”

Since April 2020, Zilch has been regulated “by the Financial Conduct Authority (FCA), obtaining a consumer credit license through the FCA Regulatory Sandbox Program.”

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