BNPL firm Zilch hits $2bn valuation

London-based Buy Now, Pay Later (BNPL) firm Zilch has hit a $2 billion valuation after raising $110 million in a Series C funding round.

The round was led by Ventura Capital and Gauss Ventures, while existing investor Goldman Sachs also participated.

The $2 billion figure is quadruple the $500 million valuation it received in March of this year, when it raised $80 million.

The Financial Conduct Authority (FCA) approved firm, founded in 2018 by current chief executive Philip Belamant in 2018, competes with Klarna, Afterpay, and Affirm in the increasingly crowded BNPL space.

Zilch said it will use the capital to fund its expansion into the US, where it has recently opened an office in Miami, Florida and secured a lending license in California.

The firm said it plans to hire 150 staff in the US over the next 12-18 months.

Zilch claims it currently has 1.2 million customers and is onboarding 200,000 new users a month.

Zilch is not the only BNPL firm to announce international expansion in the past week; Klarna launched in Ireland several days ago.

Challenger banks Monzo and Revolut also announced their plans to provide BNPL services to their customers in September.

According to payment firm Worldpay’s data, BNPL accounted for 2.1 per cent of international e-commerce transactions, around $97 billion, in 2020.

The BNPL sector’s growth is not without its issues. One in eight – 12 per cent – of consumers between 18 and 34 have been chased by debt collectors after using Buy Now, Pay Later (BNPL) services, according to research by Citizens Advice.

    Share Story:

Recent Stories

Meet Evelyn, your Economic Sanctions/PEP/Adverse Media Alert Adjudication Analyst
Meet Evelyn, an Economic Sanctions/PEP/Adverse Media Alert Adjudication Analyst, who uses native AI/ML capabilities to automate the Customer/PEP screening and Negative News screening alert adjudication processes for leading BFS organizations with greater speed, accuracy, and consistency than human analysts.

New Business Frontiers
FStech’s Mark Evans discusses the future of financial services with Liu Jianning of Huawei, covering the limitations that current thinking can impose, how financial institutions can embrace technology to be both agile and resilient, and making space for the organisation to focus on the job of creating innovative business models and on delivering business value for their customers.

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.