London: British fintech company Zilch announced its first-ever profitable month in July 2024, a significant achievement as the company prepares for a potential initial public offering (IPO). The firm, which operates in the competitive buy now, pay later (BNPL) space alongside industry giants like Klarna and Block, reached profitability within four years of its founding—outpacing several of its peers.
Zilch's success comes sooner than competitors such as Starling and Monzo, which took over three and four years, respectively, to turn a profit. Some fintechs, like Revolut, managed to break even in just two years. Zilch also revealed that its annual revenue run rate has surpassed £100 million ($130 million), doubling from the previous year.
Philip Belamant, CEO and co-founder of Zilch, credited the company’s profitability to strategic growth rather than cost-cutting, a method many other venture capital-backed fintechs have relied on during challenging economic times. "While others have had to cut back significantly, some even going bust, we focused on expanding our business to achieve profitability," Belamant said in an interview with CNBC’s "Squawk Box Europe."
In a separate announcement, Zilch named former Aviva CEO Mark Wilson to its board as a non-executive director. Wilson expressed enthusiasm about joining the company during this critical phase, aiming to support Zilch’s path toward sustainable leadership in the fintech sector.
Looking ahead, Belamant shared plans to take Zilch public within the next 12 to 24 months. In June, the company secured 125 million dollars in initial debt financing from Deutsche Bank, with the option to access up to 315 million dollars in total credit. This financing is expected to help Zilch triple its sales volumes over the next few years.
Klarna, one of Zilch’s main competitors in the U.K., is also considering a stock market debut in the near future, with its CEO Sebastian Siemiatkowski indicating that a listing could occur as early as this year.
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