Fintech
FinTech Zilch secures £100m of debt financing ahead of its stock market flotation
By Gloria Methri
Today
- ASPN
- BNPL
- Consumer credit
UK FinTech Zilch has secured £100m of debt financing ahead of its long-awaited deadline public list.
Zilch, which offers advertising-subsidized buy now pay later (BNPL) services, said it will use the funds to launch new products for a “broader customer base”.
The debt securitization transaction was organized by Deutsche Bank.
CEO and co-founder of Zilch Philip Belamant said: “With this new securitization, we are poised to triple sales volumes and achieve significant capital efficiencies as we continue to bring billions of dollars in trade to our retail network and, as a result, hundreds of millions in savings and subsidies to our customer base.
“This partnership not only provides an excellent opportunity for debt investors to join Zilch’s success, but also allows us to accelerate the rollout of our roadmap of capabilities that will expand portfolio and market share,” he added.
In less than four years, Zilch has amassed more than 4 million customers and now processes more than 10 million monthly payments. THE platform offers customers a rewarded debit and interest-free installment offer in one solution.
Zilch claims to have generated more than £2.5 billion in commerce and saved its clients more than £450 million in fees and interest through its advertising subsidy model.
Hugh Courtney, chief financial officer at Zilch, said the securitization represents “an important 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 payment options. Deutsche Bank really worked hard to find a tailor-made solution that fits our unique capital efficiency model,” he said
“The financing provides an initial benchmark for evaluating our debt issuance in the future, allowing us to competitively match pricing and terms as the business continues to develop. Finally, the securitization represents an important milestone as we work towards an IPO in the future.”
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