Zilch Fintech Startup London: Revolutionizing the Way We Think About Credit

Zilch is a London-based fintech startup that has been making waves in the buy now, pay later (BNPL) space.

Co-founded in 2018 by Philip Belamant and Sean O’Connor, the company has quickly gained popularity and has over 3.5 million users as of 2023 and over 220 employees.

Zilch allows users to split the cost of their purchases into manageable instalments with zero interest and zero fees.

Zilch’s journey to unicorn status has been nothing short of impressive.

In just 14 months, the company went from Series A to unicorn status, reaching a valuation of €1.7 billion after securing $50 million in Series C taking it to $160 million in funding and has been operating in the US since May 2022.

The fast-growing fintech startup has also caught the attention of big players in the industry, including eBay, which backed Zilch with funding in the ‘low single digit millions’, according to The Telegraph.

Key Takeaways

  • Zilch is a London-based fintech startup that has quickly gained popularity in the BNPL space.
  • The company reached unicorn status in just 14 months and has secured funding from big players like eBay.
  • Zilch’s unique market position and commitment to responsible lending practices have helped it stand out in a crowded market.

Zilch’s Journey to Unicorn Status

Zilch, a London-based fintech company, has quickly risen to become one of Europe’s fastest-growing unicorns in the buy now, pay later (BNPL) industry.

Zilch offers customers the ability to pay for purchases in six interest-free installments, with only 25% of the purchase price required upfront.

Series Funding Highlights

Zilch has undergone several funding rounds to fuel its growth.

The company’s most recent funding round, a $110 million Series C led by Ventura Capital and Gauss Ventures, pushed Zilch’s valuation over $2 billion, making it the fastest European company to reach double-unicorn status.

Zilch’s previous funding rounds included a $30 million Series A led by Gauss Ventures and a $80 million Series B led by DMG Ventures.

Product and Services

Zilch’s BNPL platform offers customers a seamless and affordable payment option.

The company uses open banking technology to assess a customer’s affordability profile and determine their creditworthiness.

Zilch’s platform also includes a tap and pay feature, allowing customers to make purchases at participating retailers using their Zilch debit feature.

The virtual Zilch Mastercard is provided free of charge to all Zilch users who can then pay with Zilch wherever Mastercard is accepted. Zilch rewards its users through cashback, savings, and personalised discounts and deals through the vertically integrated in-app shopping interface, which is powered by the proprietary ASPN technology.

In conclusion, Zilch’s journey to unicorn status has been nothing short of impressive. With its innovative BNPL platform, strategic partnerships, and commitment to financial wellness, Zilch has positioned itself as a leader in the rapidly growing BNPL industry.

Regulations and Market Position

Zilch, a London-based BNPL provider, operates under the regulatory compliance of the Financial Conduct Authority (FCA) and holds a consumer credit license.

The company has been praised for its responsible lending practices, including the use of soft credit checks and transparent fees. Zilch’s direct-to-consumer model has enabled it to acquire over 3.5 million customers, making it a significant player in the UK BNPL market.

Regulatory Compliance

As a regulated entity, Zilch is subject to the FCA’s rules and regulations. The company has demonstrated its commitment to responsible lending by conducting soft credit checks and offering transparent fees.

Zilch’s customer-centric approach has earned it a high rating on Trustpilot, with customers praising the company’s transparency and customer service.

Competitive Landscape

Zilch operates in a highly competitive market, with established players such as Klarna, Afterpay, and Revolut. However, Zilch’s unique direct-to-consumer model and responsible lending practices have enabled it to carve out a niche in the market.

The company’s recent Series C funding round, led by Gauss Ventures and DMG Ventures, has provided it with the capital to expand its operations and compete with larger players.

Customer Perception and Responsibility

Zilch’s commitment to responsible lending has earned it a positive reputation among customers. The company’s use of soft credit checks and transparent fees has helped to build trust with its customer base.

Zilch’s focus on customer service and responsibility has also enabled it to differentiate itself from other BNPL providers.

In summary, Zilch’s direct-to-consumer model, responsible lending practices, and regulatory compliance have enabled it to establish a strong position in the UK BNPL market.

The company’s recent Series C funding round and partnerships with investors such as Gauss Ventures and DMG Ventures have provided it with the capital to expand its operations and compete with larger players.