London-based Zilch raised $110M at $2B Valuation led by Ventura Capital

London-based Zilch raised $110M at $2B Valuation led by Ventura Capital

Zilch, a London-based start-up raised $110 million in a round of funding. The company is now valued at $2 billion which is 4 times what it was worth a few months ago. Additionally, the company has seen massive growth amid surging demand for buy now, pay later services.     

The fresh investment was led by Ventura Capital, a pre-IPO investor that has also backed market giants like Alibaba and Spotify, along with Gauss Ventures, an investor in London fintech firm Curve. The acceleration of e-commerce during the global pandemic has attracted online transactions via Buy now, pay later, also known as BNPL services. This service helps the shoppers split the cost of purchases over time, and it is often interest-free. While the competitors like Afterpay, Klarna, and Affirm include their checkout options on select retailers’ websites, Zilch, on the other hand, enables the users to pay at any merchant that accepts Mastercard. The company is hoping to stand out from the crowd with its approach.

Zilch’s CEO and founder, Philip Belamant, said the firm chose the said as, unlike other companies that “look exactly the same”, they don’t to be a copycat and are trying to stand out. The process of making money is the same for Zilch as its competitors, but the firm takes a small cut from merchants on each transaction processed via its platform. The retailers are willing to pay the small as it ultimately increases sales. He also added that the growth of this service will be tested in the coming years as governments across the globe are coming up with regulations to monitor the space closely.

BNPL is a debt instrument that made Zilch obtain a consumer credit license from the U.K.’s Financial Conduct Authority in 2019. The company’s service offers a “pay now” option as well that enables the user to pay for items in full.

Zilch is planning to use the fresh funding to launch its branch in the United States. It started with an office in Miami and about 10 employees.