Zilch closes additional USD30m equity round
Buy now, pay later specialist Zilch has secured an additional USD30 million equity funding enabling it to close its oversubscribed pre Series B in less than three weeks.
Zilch is now in prime position to continue scaling its unique over-the-top BNPL business, which has seen customer registration numbers quadruple over the last six months and transaction volume grow by more than 100 per cent month-on-month.
The UK FinTech - which recently became the UK’s first BNPL FinTech to secure a consumer credit authorisation with the Financial Conduct Authority (FCA) - has introduced a number of strategic investors during this round including one of the world’s largest VC funds, Gauss Ventures and Simon Nixon (Seek Ventures and co-founder of Money Supermarket).
Zilch CEO and Founder, Philip Belamant, says: "We are excited and humbled by the response our product has received by both investors and customers alike. Customers recognise our dedication to focus on their needs. This is what sets us apart from other BNPL players in the market today and what continues to drive us in creating a new category - we want and can help people during these difficult times as our systems self adapt to the socio economic conditions of the day and we feel privileged to be in a position to do so. We are just getting started and have some amazing new features coming soon, all of which track our customers' way of life, financial constraints and aspirations!”
Unlike traditional BNPL products that require technical integration with merchants, Zilch’s unique (patent pending) model does not require any integration and can thus instantly provide its customers accessibility everywhere. This gives Zilch the ability to scale rapidly and one of the reasons why customers are calling it, “a shopping revolution” and more recently, “the new AmEx”.
Belamant continues: “Zilch ensures customers never over-borrow. We make use of Open Banking and AI along with soft credit checks to determine each customer's level of affordability. As a result, Zilch’s customers rarely default and make use of the product as a cash flow management tool, which has proven to be of huge value to our customers.”
Zilch delivers its unique proposition to customers by leveraging its strategic partnership with Mastercard. Jason Lane, EVP, Market Development Europe at Mastercard, says: “Zilch is helping shoppers manage their cash flow in a way that suits them best and we are excited to partner with innovative FinTechs, such as Zilch, across Europe as we scale innovative payment solutions that improve people’s lives.”
Nikita Tchesnokov, Partner of Gauss Ventures, says: “Zilch is one of the most exciting and disruptive new players to enter the BNPL market. Zilch sets itself apart by engaging customers at the beginning of the buying journey and giving them a seamless, interest free method of purchase. This unique consumer centric approach, coupled with its technology and understanding of the millennial and Gen Z population, are core reasons for our decision to invest in the business. Gauss Ventures is thrilled to play a part in supporting Zilch’s ambitious plans and we wish the team all the best for the next chapter of their exciting journey.”