Fintech
London-based fintech Zilch rakes in €118 million as it targets an IPO
Zilch, a London-based advertising-supported payments network (ASPN), announced on Wednesday that it has secured a £100 million (around €118 million) key securitized 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 inches closer to an IPO.
The financing will allow Zilch to grow its business and accelerate its ability to create and launch new products to a broader customer base.
Philip Belamant, CEO and co-founder of Zilch, says: “We are thrilled to announce the financing as it marks a transformative step in Zilch’s journey. With this new securitization, we are poised to triple sales volumes and achieve significant capital efficiencies as we continue to drive billions of dollars in trade to our retail network and, as a result, hundreds of millions in savings and subsidies to our customer base”.
No way says it has seen impressive growth in just under four years, acquiring more than 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 Zilch’s success, but also allows us to accelerate the launch of our roadmap of capabilities that will expand portfolio and market share. We add over 100,000 new customers every month, doubling revenue year over year, and this deal will allow us to build on that momentum,” adds Belamant.
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The company offers customers a debt option with premium yield and zero interest installment combined into one.
To date, the platform has facilitated over £2.5 billion in commerce and saved its customers over £450 million in fees and interest through its advertising subsidy model.
This model aims to eliminate the high cost of consumer credit.
Hugh Courtney, Chief Financial Officer at 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 payment options. Deutsche Bank really worked hard to find a tailor-made solution that fits our unique capital efficiency model.
“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.”
Zilch: What do you need to know?
No way claims to be the world’s first direct-to-consumer (ASPN) subsidized payments network.
The company aims to revolutionize the $50 trillion (€47.09 trillion) advertising and payments industries by bringing together debt, credit and savings.
Its unique, vertically integrated proprietary data business model sets it apart from others in the fintech sector.
Zilch offers millions of customers the freedom to go anywhere in the world (online or offline) and, when they pay, earn up to 5% cashback and rewards on debit payments (“Pay Now”) or distribute interest-free credit refunds on six weeks or three months.
In 2023, Zilch launched its proprietary ASPN service, which allows retailers around the world an instant connection to millions of Zilch’s first-party data, a closed-loop network of high-intent customers, while offering customers savings , personalized offers and discounts coded based on their habits. daily expense.
In January 2023, Zilch signed an innovative reporting agreement with the UK’s leading credit reference agencies, transforming the UK lending ecosystem by enabling all adults to build their credit records using interest-free credit instead high-cost revolving credit products.