Zilch, the London-based fintech company, has secured a new £30 million loan facility, indicating a preference for debt-driven expansion over equity-based growth. According to documents filed with Companies House, the Victoria-headquartered firm entered into the agreement with US Bank, based in New York. This marks the largest financing deal for Zilch since it obtained a £100 million debt facility from Deutsche Bank last year, supplementing its £20 million Series D funding in 2023. The specific terms of the loan have not been disclosed, and Zilch has declined to comment on the matter.
The new agreement comes in the wake of Zilch increasing its provisions for credit losses over the past year, as the demand for buy now, pay later services surged. The company raised its provisions for credit losses to £27.4 million, marking a 116% increase from £12.7 million the previous year. Credit losses, as a percentage of gross merchandise value, rose slightly to 1.5% from 1.2%.
Zilch has also reached a milestone of five million registered customers, with investment in customer acquisition increasing by 62% to £9.8 million. The company’s Gross Merchandise Value, representing total sales conducted through Zilch, grew by 73% to £1.9 billion. Despite ongoing net losses, Zilch reduced these by 79% to £10.5 million, while revenue for the year ending in March soared by 93% to £110.3 million.
Recently, Zilch’s CEO, Philip Belamant, met with Microsoft Chief Executive Satya Nadella during a state visit to the UK by US President Donald Trump. Belamant remarked that the visit highlighted the potential of global partnerships to drive future growth. Their discussion on AI and commerce underscored the rapidly evolving landscape and the transformative impact companies like Zilch could have on consumers and businesses. Belamant hinted at an upcoming announcement regarding the company’s next phase of growth, set to be revealed at its firmwide summit in October.
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