London FinTech Zilch has raised £100 million in securitised debt financing arranged by Deutsche Bank.

The business says it is poised to triple its sales volume as it works towards an IPO.

In just under four years, Zilch has amassed over 4m customers and now processes more than 10m monthly payments. 

The Buy Now Pay Later company, which was backed by eBay late last year and has previously raised almost $500m in debt and equity funding, became Europe’s fastest ever FinTech double-unicorn in 2022.

It said the fresh financing will accelerate its ability to create and launch new products for a broader base of customers.

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“We’re thrilled to announce the financing as it marks a transformative step in Zilch’s journey,” said CEO and co-founder Philip Belamant. 

“With this new securitisation, we’re poised to triple sales volumes and achieve significant capital efficiencies as we continue to drive billions in commerce to our retail network and, in turn, hundreds of millions in savings and subsidies to our customer base.

“This partnership not only provides an excellent opportunity for debt investors to join in Zilch’s success, but it also enables us to accelerate the rollout of our feature roadmap which will broaden wallet and market share. 

“We’re adding over 100,000 new customers every month, doubling revenue year over year, and this deal will allow us to build upon that momentum.”

Hugh Courtney, CFO, said: “We are excited to announce our entry into the securitisation market. Optimising our capital structure and pricing is key to providing our customers with more flexible ways to pay. Deutsche Bank really leant in to find a bespoke solution to match our uniquely capital-efficient model.

“The financing sets an initial benchmark for us to price our debt issuance in the future, allowing us to competitively match the pricing and terms as the business continues to develop. Finally, the securitisation represents a major milestone as we work towards an IPO in the future.”

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