Buy Now, Pay Later (BNPL) company Zilch is set to raise $110 million from Goldman Sachs and DMG Ventures, the investment arm of the Daily Mail group, according to sources reported by Sky News.

The cash and equity deal brings the overall size of the FinTech’s Series B funding round, announced in April, to $200 million.

The FinTech, launched in 2018 by founder and current chief executive Philip Belamant, has 150 employees at its London headquarters.

The sources said Zilch will use the funding to expand into the US and improve its brand profile and that it will hire 100 new employees to meet these growth goals.

The company said the capital will help it move towards its eventual goal of an initial public offering (IPO), though the sources did not mention the timeline it expected it to occur in.

Zilch competitor Klarna announced new equity funding of $639 million in June.

This round valued the Swedish payments provider at $45.6 billion, making it the highest-valued private FinTech in Europe according to the company.

BNPL payments are popular in the UK; these types of payments accounted for 3.6 per cent of UK online sales last year, according to research commissioned by Klarna in March.

The Financial Conduct Authority (FCA) recently listed reviewing BNPL practices as one it’s key consumer properties for the year ahead in its 2021/2022 business plan.

“As our customer numbers continue to grow, we’ve taken the decision to raise additional capital to service this phenomenal demand,” said Philip Belamant, Zilch chief exec. “As Zilch continues to scale at pace, we’re delighted that well-respected institutions such as Goldman Sachs and DMG Ventures share our vision of what credit should be in today’s world and how that can be delivered directly to customers in the most responsible way."

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