Zilch Secures £100 Million in Securitised Debt to Fuel Growth

Zilch, the world’s first ad-subsidised payments network (ASPN), has secured £100 million (US$126.5 million) in securitised debt financing arranged by Deutsche Bank. This funding aims to accelerate Zilch’s expansion and innovation efforts, targeting a broader customer base.

Since its launch four years ago, Zilch has grown rapidly, amassing 4 million customers and processing over 10 million monthly payments. The platform has facilitated over £2.5 billion (US$3.1 billion) in commerce, saving customers more than £450 million (US$569 million) in fees and interest through its ad-subsidised model, which eliminates high consumer credit costs. Zilch offers integrated reward-earning debt and zero-interest instalment options.

CEO and Co-Founder Philip Belamant expressed enthusiasm about the financing: “This securitisation marks a transformative step in Zilch’s journey. It positions us to triple sales volumes and achieve significant capital efficiencies. This partnership also enables us to accelerate our feature rollout, broadening our market share.”

Belamant highlighted the company’s ongoing growth, adding over 100,000 new customers monthly and doubling revenue year over year. The financing will support this momentum.

Zilch has distinguished itself in the Buy Now, Pay Later (BNPL) space, achieving double-unicorn status within 14 months. It has partnered with Experian to implement responsible BNPL criteria and expanded its collaboration with AWS to enhance its AI and ML capabilities.

Chief Financial Officer Hugh Courtney emphasised the significance of entering the securitisation market: “Optimising our capital structure is key to providing flexible payment options. Deutsche Bank crafted a bespoke solution that aligns with our capital-efficient model. This financing sets a benchmark for future debt issuances and represents a major milestone as we work towards an IPO.”

Zilch’s innovative approach and strategic partnerships underscore its commitment to redefining consumer credit and driving significant savings for its customers.