Zilch Looks to Take BNPL Firm Public in 2027

U.K. FinTech Zilch is reportedly in talks with banks to prepare for a possible public listing on the London Stock Exchange, according to the Financial Times (FT). The company, which specializes in buy now, pay later (BNPL) loans, has been a frequent subject of IPO speculation. In a 2021 funding round, Zilch was valued at $2 billion, a figure it has maintained in subsequent rounds.

However, Zilch incurred a loss of £10.5 million ($13.9 million) in its most recent financial year, down from £50 million ($66.3 million) the previous year. Despite this setback, the company aims to be profitable by the time it goes public next year, according to sources familiar with the matter. Zilch is also planning to expand its international presence by acquiring Lithuania's Fjord Bank, a move that has granted the company a European banking license.

The firm, which has approximately six million customers, generates revenue through targeted ads based on transaction data, as well as cashback debit cards and zero-interest loans. While PYMNTS has reached out to Zilch for comment, the FinTech has not yet responded. Recent PYMNTS Intelligence data highlights that customers who utilize multiple BNPL providers are more inclined to accept interest payments, potentially influencing the appeal of Zilch's product offering.