London-based buy now pay later (BNPL) provider Zilch has raised £100M in a securitisation debt deal led by Deutsche Bank.
In a statement, the Klarna rival said the financing will enable it to develop new products as it works towards a future IPO. In just under four years, Zilch says it has amassed over 4 million customers and is currently processing more than 10 million monthly payments.
Zilch offers a Buy Now Pay Later (BNPL) option through a virtual Mastercard, allowing shoppers to split their purchases over six weeks at various UK retailers, with some charging a fee and others free of charge. Although not a lender, Zilch allows shoppers to split up payments for purchases over six weeks. Consumers can use the Zilch app to manage their credit limit and payments and view card details
Through its ad-subsidisation model Zilch fouces on to eliminating the high cost of consumer credit. To date, the platform has reportedly generated over £2.5 billion in commerce and saved its customers more than £450 million in fees and interest.
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 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.
He added: “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.”
