Zilch, the consumer lender which has become one of Britain’s fastest-growing fintech companies, has initiated a search for international takeover targets as part of its accelerated expansion in preparation for a significant stock market listing.
Sky News has learned that Zilch, led by co-founder Philip Belamant, is collaborating with advisors to pinpoint potential acquisitions outside the UK in the upcoming months.
The company, regulated in the UK and backed by investors like eBay, has garnered a customer base exceeding five million individuals.
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It has now positioned itself as one of the most valuable fintech companies in the UK, making its forthcoming public market debut a highly sought-after opportunity for stock exchanges in London, New York, and other locations.
Mr. Belamant has been actively engaged in discussions with regulators and policymakers regarding reforms to London’s listings framework amidst growing concerns about the attractiveness of UK public markets.
He cautioned last year that Zilch could pursue a listing outside the UK if significant measures were not taken to incentivize «retail investors to purchase and retain British stocks».
Sources close to the company have indicated that Zilch has delivered over £750 million in savings on interest and fees to customers since its inception.
Transactions through its platform now boast a gross merchandise value exceeding £4 billion, as reported.
Zilch has annual revenues surpassing £150 million, positioning it well to acquire competitors that may be too small to secure additional funding or go public, according to sources.
In recent times, the company has also been exploring a private share sale to raise capital, enlisting Citi for assistance in this endeavor.
Its most recent fundraising placed the company’s valuation at around £1.5 billion.
Other investors in Zilch include Goldman Sachs and Ventura Capital.
Zilch obtained authorization from the City watchdog in 2020 and currently offers customers a digital debit Visa card that earns rewards of up to 5% on spending.
Within the same application, customers have the option to switch to a credit card, enabling them to spread repayments over six weeks or three months with zero interest, aiding in the establishment of their credit history.
Zilch distinguishes itself from other Buy Now Pay Later firms by being regulated by the Financial Conduct Authority.
In total, Zilch has raised £500 million in equity and debt since its inception.
The company boasts a workforce exceeding 250 individuals.
Zilch declined to provide comments on Friday.