British fintech firm Zilch has achieved a significant milestone by reporting its first-ever profitable month, a crucial step as the company gears up for a potential IPO. This achievement, coming in July 2024, places Zilch ahead of many of its competitors in the highly competitive buy now, pay later (BNPL) sector. Notably, Zilch reached profitability within just four years of its founding, a faster timeline than industry giants like Starling and Monzo.
In a competitive market where fintechs often struggle to break even, Zilch’s accomplishment is a testament to its strategic approach. While rivals like Klarna and Block continue to battle for market share, Zilch has focused on scaling its business rather than resorting to cutbacks. CEO and co-founder Philip Belamant emphasized this growth-driven strategy in an interview, highlighting the company’s ability to thrive despite the challenging high-interest rate environment.
Zilch’s success is further underscored by its impressive financial performance. The company reported an annual revenue run rate exceeding £100 million ($130 million), doubling its figure from the previous year. This financial momentum, coupled with strategic leadership, has positioned Zilch as a formidable player in the fintech landscape.
Adding to its momentum, Zilch recently appointed Mark Wilson, former CEO of Aviva, to its board as a non-executive director. Wilson’s experience and leadership are expected to play a pivotal role as Zilch navigates its path toward long-term success and solidifies its position as a category leader in the BNPL sector.
Looking ahead, Zilch has its sights set on public markets. Belamant revealed plans for a potential public listing within the next 12 to 24 months. The company has also secured $125 million in initial debt financing from Deutsche Bank, with the option to draw down up to $315 million. This financial backing is expected to fuel Zilch’s ambitious growth plans, including a potential tripling of its sales volumes in the coming years.
As Zilch continues to make waves in the fintech world, its rapid rise and strategic focus on growth over cutbacks set it apart from the competition. With its eyes on an IPO and significant backing in place, Zilch is well-positioned to lead the BNPL sector into its next phase of innovation and success.
