London-based fintech firm Zilch has secured a new loan facility, indicating a preference for debt-driven expansion over equity-led growth.
The Victoria-located company has agreed to a £30m facility with New York’s US Bank, as per documents filed at Companies House.
This agreement represents the largest financing deal the fintech has negotiated since its £150m debt facility from Deutsche Bank last year, which was in addition to its £20m Series D funding in 2023.
The terms of the loan have not been disclosed and Zilch has declined to comment.
This agreement follows an increase in the fintech’s provisions for losses over the past year due to a surge in demand for buy now, pay later services, as reported by City AM.
The London-based firm increased provisions for credit losses – funds reserved to cover estimated losses from failed repayments – to £27.4m, a significant 116 per cent rise from £12.7m the previous year.
Credit losses relative to gross merchandise value, which is the percentage of a company’s total sales that it expects to lose from customers who fail to repay their debt, slightly increased to 1.5 per cent from 1.2 per cent.
Zilch reaches five million customers
However, this occurred as registered customers exceeded five million, with investment in customer acquisition increasing by 62 per cent to £9.8m. Gross Merchandise Value, referring to total sales completed with Zilch, rose by 73 per cent to £1.9bn.
While net losses continued, Zilch reported a 79 per cent reduction to £10.5m. Revenue for the year ending in March soared by 93 per cent to £110.3m.
Zilch’s chief, Philip Belamant, had a meeting with Microsoft head Satya Nadella last week during US President Donald Trump’s state visit to the UK.
Belamant commented on the encounter: “The state visit was a powerful showcase of how global partnerships will drive the next wave of growth.
“Our discussion on AI and commerce reinforced just how quickly the landscape is shifting, and how transformative companies like Zilch will be for consumers and businesses alike.”
He also hinted at “an announcement” that the tech firm would make regarding its “next phase of growth” at its upcoming company-wide summit in October.
