By the editorial team of Exec Edge
As a fintech startup focused on Buy Now Pay Later (BNPL) funding, Zilch began work on its second round of funding in April to support further growth and expansion. After raising more than $ 80 million for Series B, Zilch has secured an additional $ 110 million from Goldman Sachs (NYSE: GS) and DMG Ventures.
Goldman Sachs’ funding came from both debt and equity pledged by the private credit team in the asset management business. DMG Ventures is part of Daily Mail & General Trust (DMGT) (LON: DMGT). Support from Goldman Sachs also shows promise from the booming BNPL sector and specifically Zilch, since the company is known to support only the best in the industry.
Zilch is a UK-based startup that offers smarter payment options for those trying to control their personal cash flow. The company’s unique approach to processing deferred payments provides a patent-pending system that requires no third-party integration. Anywhere that accepts Mastercard (NYSE: MA) is also able to accept the Zilch card backed by Mastercard.
Zilch also remains committed to a cleaner planet by only offering a virtual card to reduce the amount of PVC going to landfill each year due to old credit cards, gifts and membership. The company says it is committed to going greener with the virtual wallet, which allows payments from a single account. Nothing even has Tap & Pay for a faster, more convenient way to spread payments for in-store purchases.
In order to build a stronger relationship with clients, Zilch is very clear on what can be borrowed. There is no interest or charge on the money used to reduce finance charges. Zilch wants to allow the customer to determine when they buy things based on their needs or wants, not a specific payday.
This does not mean that people can go into deep debt. Zilch makes sure to verify all customers, helping them stay within spending limits that they can easily reimburse. Zilch only supports low value discretionary purchases, providing freedom and flexibility without trapping those in debt.
Targeting largely young adult populations, Zilch is designed for Millennial and Gen Z Tech Oriented Buyer who wants to be smart with money. The easy-to-use app helps people shop at Zilch-connected stores, track purchases, and receive payment alerts. The link with the open bank means that customers can always know how much they are allowed to spend through Zilch for the BNPL option.
Zilch management has announced that the Series B funding round, which now totals around $ 200 million, will help them expand their services in the US and continue to grow in the UK.
“As the number of our clients continues to grow, we have made the decision to raise additional capital to meet this phenomenal demand,” said Zilch CEO and Founder Philip Belamant. “We are delighted that respected institutions, such as Goldman Sachs and DMG Ventures, share our vision of what credit should be like in today’s world and how it can be delivered directly to clients in the most responsible manner. . “
Zilch has seen massive growth since its debut in 2019, when the initial BETA version was released as a fully functional payment option. Since then, it has gone through the rigorous process of the Financial Conduct Authority (FCA) to become the first UK BNPL company to be licensed and granted consumer credit authorization status.
With over 700,000 users, Zilch has gained a steady influx and continues to grow at over 120% per quarter. Each potential client is carefully screened with a credit check and background check to ensure they have the right financial support solutions.
Ultimately, Zilch would like BNPL to be an option for anyone, anywhere. The company believes its revolutionary payment solutions offer unparalleled freedom.
In 2020, 37% of UK customers said they had used a BNPL service at some point. More than half (52%) said they increased the use of these services during the pandemic. Around 9.5 million UK customers said they avoided a retailer because they did not offer a BNPL option at checkout.
While BNPL services are increasingly popular for e-commerce, companies like Zilch are also striving to make it a reality for in-store purchases. Due to the real-time connection and the lack of third-party connectivity, Zilch allows people in the UK to start benefiting from BNPL solutions beyond the virtual space.
About Philippe Belemount
As a leader in fintech, Philip Belamant has successfully founded and exited a number of startups in various sectors of the industry. His work includes creating PBEL and growing to 5 million users with $ 100 million in revenue before selling it to Net1 UEPS Technologies (NASDAQ: UEPS).
Before creating its own startups, Belamant participated in the creation and launch of the first Cash-to-Mastercard program for UBER in South Africa. He has helped start and launch virtual cards in Mexico, USA, Africa, India and Spain. His work in Africa also included launching mobile and value-added payment services in 15 countries.
Created to offer something different in the BNPL world, Zilch has the friendly, down-to-earth approach of modern generations. The fintech player is focused on the sustainable spending and growth of its UK customer base. The company wants people to feel liberated and not burdened with debt, which makes their approach to fees and interest rates almost unbelievable.
Instead of relying on late fees and customer interest, Zilch makes money by getting the retailer’s share (which is normally paid to the credit card company). Because users can save money and enjoy convenient shopping, the business is growing rapidly. About 20,000 new applicants are currently approved each month.