British fintech firm Zilch Technology Ltd. has secured £100 million ($127 million) through a securitized debt financing deal arranged by Deutsche Bank AG. This significant capital infusion aims to fuel Zilch’s expansion plans as it prepares for a highly anticipated IPO next year.
Expansion and New Product Development
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Zilch, a leading buy-now-pay-later (BNPL) company, plans to utilize the funds to develop new products and broaden its customer base. The company, which currently serves more than 4 million customers and processes over 10 million monthly payments, announced the deal in a statement on Wednesday.
“This deal means growth,” Zilch co-founder and Chief Executive Officer Philip Belamant stated in an interview with Bloomberg Television. “This allows us to triple commerce that we can send to our retail partner network, which is phenomenal.”
Belamant highlighted that the new financing would expedite the rollout of Zilch’s product road map, bolster its market share, and set the stage for the company’s IPO. The London-based fintech firm, valued at $2 billion during a Series C funding round in 2022, is poised to enhance its market presence significantly.
IPO Prospects and Market Strategy
As Zilch looks ahead to its IPO, Belamant revealed that the company is weighing its options regarding the location for the public listing. Discussions have already been held with major stock exchanges, including Nasdaq, the New York Stock Exchange, and the London Stock Exchange.
“In both the US and the UK, capital has to move back to IPOs,” Belamant emphasized. “In the UK specifically, we know we need to change things. We need liquidity in the market — we have to have that. We need perception to change around the LSE.”
The UK’s attractiveness as a listing destination has diminished in recent years, with companies often seeking higher valuations in other markets. This year, only a small fraction of the $11.9 billion raised via IPOs in Europe came from the UK, marking a historic low. Belamant’s comments reflect a broader sentiment that the UK needs to revitalize its capital markets to attract more high-growth companies.
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In March, Belamant noted that Zilch was nearing profitability, positioning the firm well for its future public debut. The strategic partnership with Deutsche Bank and the new debt financing are pivotal steps in Zilch’s journey towards becoming a dominant player in the fintech space and achieving a successful IPO next year.
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