Zilch Secures £100m Debt Finance as It Weighs Up IPO Location
British fintech company Zilch, known for its buy now, pay later (BNPL) services, has secured a £100m debt financing deal from Deutsche Bank. This funding will help the company grow and launch new products for more customers.
Chief Executive Philip Belamant stated, "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." He emphasized that the partnership offers great opportunities for debt investors and allows Zilch to expand its features and market presence.
Aiming to Expand Rapidly
Zilch plans to add over 100,000 new customers every month and aims to double its revenue year over year. Although based in London, Zilch is also considering going public outside of the UK. Belamant suggested that if UK market reforms are successful, listing on the London Stock Exchange (LSE) would be beneficial. However, if not, the firm might seek other locations for its initial public offering (IPO).
Financial Performances and Ambitions
Last October, Zilch was valued at £1.65bn after an investment from eBay Ventures. A month later, the company reported a revenue of £30m for the year ended 31 March 2023, tripling its previous year’s revenue. Despite these impressive figures, Zilch has not yet achieved profitability.
Focus on Domestic Growth
To reach profitability, Zilch decided to pause its U.S. expansion to focus on growth within the UK. Belamant indicated that reaching profit is crucial before proceeding with any IPO plans.
Encouraging Public Tech Space in London
Zilch’s potential IPO is promising for London’s public tech space. Belamant mentioned that planned market reforms, like directing pension investments to high-growth companies and increasing investor incentives, could make the UK a more favorable listing environment. He pointed out:
"If this all happens, I’m not sure why you wouldn’t want to list on the LSE…But of course, if it doesn’t happen, then we have to take the appropriate decision and that might be to go somewhere else."
Zilch stands at an exciting juncture as it not only expands its customer base but also considers pivotal financial decisions that could shape its future in the fintech industry.
