British fintech double unicorn Zilch, the world’s first ad-subsidised payments network (ASPN), has announced its first month of operating profit while surpassing a revenue run rate of over $130 million. This follows the $125 million debt financing from German banking giant Deutsche Bank.
Revenue milestone
Zilch achieved both operating profit and surpassed a $130 million revenue run rate in July 2024. The speed at which the fintech company has achieved profitability places it as a direct rival to European fintech giants such as Revolut, Starling Bank, and Monzo. All four companies also reported revenues of over $130 million within three to five years with Zilch almost doubling revenues in the year to March 2024.
As per the industry data, an average tech company takes 8 to 10 years in the US to break through the $100m revenue ceiling while the same is said to be 15 years in Europe and 17 years in the UK.
Philip Belamant, CEO and co-founder of Zilch, said: “This milestone fundamentally changes the game for us. Profitability is something that a lot of fast-growing businesses are struggling to achieve, and I am hugely proud of the team for reaching this mark, ahead of plan. While many have cut their way to profit, we’ve doubled our revenue year on year, expanded our team, saved our 4 million customers over half a billion dollars in fees and interest costs, and generated over $3 billion in new sales for merchant partners through our ad-subsidised payments network.”
Appoints new board member
In addition to this, the company also announced the appointment to its Board of Mark Wilson, former CEO of Aviva and AIA and current member of BlackRock’s Board of Directors.
Commenting on his new appointment to the Board of Zilch, Mark Wilson, said: “I am excited to join Zilch at this critical juncture. Under Philip’s visionary leadership, Zilch is transforming consumer finance with an innovative and responsible approach that lowers customer finance costs and fills a fast-growing need in society. I look forward to working alongside the Board to further help Zilch steer its path toward sustainable success as a category leader.”
Plans for IPO in 2 years
Currently, the company aims to go public in the next 12 to 24 months. This deal is likely to help the company accelerate the path to IPO. As per CNBC, for every $1 of debt raised, the double unicorn can generate $30 of gross merchandise value (GMV), which is the combined value of sales processed on its platform.
With $125 million of capital, it will drive $3.75 billion of gross sales. Therefore, with a total of $315 credit, it is expected to generate nearly $10 billion of GMV by 2026.
To date, Zilch has achieved remarkable growth, amassing over 4 million customers and processing over 10 million monthly payments. The platform has already generated over £2.5 billion GMV and saved its customers over £450 million in fees and interest.
Superior user engagement
Zilch is using AI to unlock the full potential of four years of first-party consumer data and drive even more precise, personalised offerings. A deep understanding of users’ needs allows the company to convert sales better than any online platform to date, converting sales for advertisers up to 10-20 times more effectively than traditional search and social platforms.
As a result, customers now open their Zilch app daily, which creates unrivalled engagement and conversion – all of which continues to drive major merchants to switch their ad budgets to Zilch’s ad-subsidised payments network. This will enable the company to offer better deals, discounts, and subsidies for customers.
Chairman of Zilch, Serge Belamant, remarked: “As Zilch’s Chair, I am delighted Mark has made this commitment as the value he will add will complement the expertise we currently have and help guide the company in its mission to provide affordable credit and rewarding debit for all as part of its financial inclusion vision. Mark’s deep expertise running global financial businesses will be a tremendous asset as Zilch continues its rapid trajectory, profitable growth, and market expansion.”
