Zilch Targets 2027 IPO
Buy-Now-Pay-Later Provider Zilch Invites Banks to Pitch for Potential London IPO
Anonymous
Key Points
1
Zilch has nearly six million registered users. Beyond BNPL, it offers a cashback debit card and zero-interest loans, and generates revenue from targeted advertising based on transaction data.
2
Zilch raised more than $175 million in combined debt and equity in November, following a £100 million securitised debt facility led by Deutsche Bank in June 2024.
3
The UK has introduced capital-markets measures that could affect the appeal of a London listing: the FCA changed listing rules in July 2024, including creating a single-category regime and reducing free-float requirements, while the government has outlined further Leeds Reforms.
4
A potential London IPO would arrive amid a recent dearth of large listings: City AM reported that the Uzbek National Investment Fund was the only listing of size so far that year, with Airtel Money also expected to list.
Buy now, pay later provider Zilch is moving toward a London stock market debut, having invited investment banks to pitch for advisory roles on a potential 2027 IPO Finextra. The company, which counts nearly six million registered users, is also considering New York and continental Europe, though London remains the favored option Finextra. A listing could come in the second half of 2027 or early 2028, marking a major test for the UK's ability to attract high-growth fintech companies.
Zilch's financial performance has improved sharply: revenue rose 93% to £110.3 million in its latest reported year, while net losses fell 79% to £10.5 million FintechFutures. The company raised more than $175 million in combined debt and equity in November CrowdfundInsider. However, sources say an IPO may not achieve Zilch's $2 billion valuation from 2021, and the company is focused on reaching profitability before listing FT.
From BNPL to Banking: Zilch's Broader Strategy
Zilch started as a buy now, pay later app but has expanded far beyond that core product FT. The company now offers a cashback debit card, zero-interest loans, and generates revenue from targeted advertising based on customer transaction data CrowdfundInsider. This diversification helps reduce reliance on BNPL fees, which have come under pressure in recent years as the sector matured.
Zilch is also pushing into European banking. The company acquired a Lithuanian bank and secured a European banking license, signaling ambitions beyond the UK market FintechFutures. This move strengthens its position ahead of an IPO and provides a foundation for international expansion.
Why London Faces Stiff Competition for Big Tech Listings
CEO Philip Belamant has been vocal about London's challenges. He argues the city needs stronger investor incentives and better market liquidity to attract high-growth companies Finextra. The criticism reflects real concerns: the UK has seen very few large IPOs in recent years, with one analyst noting that only the Uzbek National Investment Fund achieved significant scale CityAM.
The British government and financial regulator have moved to improve the listing environment. The FCA changed listing rules in July 2024, introducing a single-category regime and reducing free-float requirements Finextra. The government has also outlined further reforms known as the Leeds Reforms Finextra. Whether these changes are enough to convince Zilch remains uncertain.
Recent Fundraising Shows Growing Investor Confidence
Zilch's path to IPO has been supported by steady capital raises. In June 2024, Deutsche Bank led a £100 million securitized debt facility CrowdfundInsider. Just five months later, in November, the company raised more than $175 million in combined debt and equity CrowdfundInsider. This funding demonstrates investor appetite, even if valuation expectations have shifted since 2021.
The strong fundraising sets up Zilch to reach profitability before listing. With revenue growth accelerating and losses shrinking, the company has clear momentum FintechFutures. A profitable or near-profitable IPO candidate would be far more attractive to public markets than a loss-making fintech debut.
Sentiment
Mostly PositiveNEGATIVENEUTRALPOSITIVE
Publishers
13
Articles
3
Reach
16
A
AnonymousAuthor
