Zilch Secures £100 Million Financing to Drive Expansion

Zilch, the world’s first ad-subsidised payments network (ASPN), has announced a significant £100 million securitised debt financing deal arranged by Deutsche Bank (DB). This substantial financing arrangement is set to fuel Zilch's growth and accelerate its capability to develop and launch new products for a wider customer base.

Zilch Secures £100 Million Financing to Drive Expansion
Zilch Secures £100 Million Financing to Drive Expansion

Zilch, the world’s first ad-subsidised payments network (ASPN), has announced a significant £100 million securitised debt financing deal arranged by Deutsche Bank (DB). This substantial financing arrangement is set to fuel Zilch's growth and accelerate its capability to develop and launch new products for a wider customer base.

In a span of less than four years, Zilch has demonstrated impressive growth, amassing over 4 million customers and processing more than 10 million monthly payments. The platform offers customers a reward-earning debit and zero-interest instalment option in one, which has generated over £2.5 billion in commerce and saved customers more than £450 million in fees and interest through its innovative ad-subsidisation model. This approach aims to eliminate the high costs associated with consumer credit.

Philip Belamant, CEO and Co-Founder of Zilch, highlighted the significance of this financing deal, stating, "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."

Belamant emphasized that this partnership not only offers an excellent opportunity for debt investors to participate in Zilch’s success but also enables the company to speed up the rollout of its feature roadmap, which will expand wallet and market share. He noted, "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."

Hugh Courtney, Chief Financial Officer of Zilch, expressed enthusiasm about entering the securitisation market. He remarked, "Optimising our capital structure and pricing is key to providing our customers with more flexible ways to pay. Deutsche Bank really leant in to find a bespoke solution to match our uniquely capital-efficient model."

Courtney added that this financing sets an initial benchmark for pricing Zilch's debt issuance in the future, allowing the company to competitively match pricing and terms as it continues to grow. He stated, "The securitisation represents a major milestone as we work towards an IPO in the future."

The £100 million securitisation deal is expected to significantly bolster Zilch's expansion strategy, enabling the company to enhance its offerings and broaden its customer base. With this financing, Zilch is well-positioned to continue its rapid growth trajectory and further revolutionize the payments industry through its ad-subsidised model.

Zilch's remarkable growth and innovative business model have made it a notable player in the payments industry. As the company continues to add new customers and increase its revenue, the support from Deutsche Bank through this financing arrangement will play a crucial role in driving its future success. The securitisation deal marks a pivotal moment in Zilch's journey, setting the stage for continued growth and innovation in the years to come.