London’s fintech Zilch bags €118M as it zeroes in on IPO

London-based Zilch, an ad-subsidised payments network (ASPN), announced on Wednesday that it has secured a key £100M (approximately €118M) securitised debt financing arranged by Deutsche Bank (DB).

With this, the company is set to triple its sales volume with a new milestone deal as it moves closer to an IPO.

The financing will enable Zilch to grow its business and accelerate its ability to create and launch new products for a broader customer base.

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.”

Zilch claims to have experienced impressive growth in just under four years, acquiring over 4 million customers and now processing more than 10 million monthly payments.

“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,” adds Belamant.

The company offers customers a reward-earning debit and zero-interest installment option combined into one.

To date, the platform has facilitated over £2.5B in commerce and has saved its customers over  £450M in fees and interest through its ad-subsidisation model.

This model aims to eliminate the high cost of 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 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.”

Zilch: What do you need to know?

Zilch claims to be the world’s first direct-to-consumer, ad-subsidised payments network (ASPN).

The company aims to revolutionise the advertising and payments industries worth $50 trillion (€47.09T) by merging debit, credit, and savings.

Its unique, vertically integrated, first-party data business model sets it apart from others in the fintech industry.

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

In January 2023, Zilch struck a ground-breaking 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.