Zilch has secured £100million in debt financing from Deutsche Bank to expand its payment services and accelerate product development.
The financing will enable the ad-subsidised payments network to grow its business and accelerate its ability to create and launch new products for a broader base of customers.
In less than four years, Zilch has seen significant growth, gaining over four million customers and handling over 10 million payments each month. Zilch offers a combined reward-earning debit and zero-interest instalment service.
The platform has facilitated over £2.5billion in transactions and saved its customers more than £450million in fees and interest through its ad-subsidized model, aiming to reduce the high cost of consumer credit.
“We’re thrilled to announce the financing as it marks a transformative step in Zilch’s journey,” said Philip Belamant, CEO and co-founder at Zilch. “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’s progress
When Zilch customers pay, they earn up to five per cent cashback and rewards on debit payments or spread interest-free credit repayments over six weeks or three months.
In 2023, Zilch introduced its proprietary ASPN service, enabling retailers worldwide to instantly connect with millions of Zilch’s first-party data and a network of high-intent customers. This service offers personalised savings, deals, and discounts tailored to customers’ habitual spending patterns.
In January 2023, Zilch also entered a significant reporting agreement with the UK’s leading credit reference agencies, revolutionizing the UK lending ecosystem. This agreement allows all adults to build their credit records using interest-free credit instead of costly revolving credit products.
Since April 2020, Zilch has been regulated by the Financial Conduct Authority (FCA), obtaining a consumer credit licence through the FCA Regulatory Sandbox Programme.
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.”
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