Zilch secures £100m financing from Deutsche Bank to fuel growth and product innovation

Zilch, recognized as the world’s first ad-subsidised payments network (ASPN), has announced a significant financial milestone with a £100 million securitised debt financing arranged by Deutsche Bank. This strategic funding is set to catalyze Zilch’s expansion and enhance its ability to develop and launch innovative products, aiming to serve an even broader customer base.

Since its inception nearly four years ago, Zilch has experienced exponential growth, rapidly expanding its customer base to over 4 million users and processing more than 10 million monthly payments. The company combines a rewards-earning debit and zero-interest installment model, generating over £2.5 billion in commerce and saving its customers upwards of £450 million in fees and interest through its unique ad-subsidisation approach.

Philip Belamant, CEO and Co-Founder of Zilch, expressed enthusiasm about the new financing, stating, “We’re thrilled to announce the financing as it marks a transformative step in Zilch’s journey. With this new securitisation, we’re poised to triple sales volumes and achieve significant capital efficiencies as we continue to drive billions in commerce to our retail network and, in turn, hundreds of millions in savings and subsidies to our customer base.”

The partnership with Deutsche Bank not only provides an excellent opportunity for debt investors but also accelerates the rollout of Zilch’s feature roadmap, enhancing its market and wallet share. “We’re adding over 100,000 new customers every month, doubling revenue year over year, and this deal will allow us to build upon that momentum,” Belamant added.

Hugh Courtney, Chief Financial Officer of Zilch, highlighted the importance of entering the securitisation market: “Optimising our capital structure and pricing is key to providing our customers with more flexible ways to pay. Deutsche Bank really leaned in to find a bespoke solution to match our uniquely capital-efficient model.”

This financing sets a benchmark for future debt issuance by Zilch, enabling competitive pricing and terms as the business scales. Moreover, the move is seen as a precursor to a potential Initial Public Offering (IPO), marking a major milestone in Zilch’s ongoing development.

Zilch’s recent financing through Deutsche Bank is a significant endorsement of its business model and strategic direction. This influx of capital not only underscores confidence in Zilch’s potential but also sets the stage for accelerated growth and innovation. As Zilch continues to disrupt the financial technology landscape, its focus on ad-subsidised payment solutions is proving to be a viable alternative to traditional consumer credit models, potentially reshaping how financial services are delivered to consumers.