Zilch achieved significant financial milestones in 2025, with the UK-based buy now, pay later fintech reporting doubled revenues alongside substantial customer growth. The company reached five million customers while posting £110.3 million in annual revenue, representing a 93 percent year-over-year increase for the period ending March 31, 2025.
The London-headquartered firm, which competes directly with established players like Klarna and Clearpay, demonstrated improved operational efficiency by cutting annual losses by 79 percent to £10.5 million. This performance reflects the company’s ability to scale its advertising-subsidized payment model while managing costs effectively.
Revenue Streams Drive Growth
Transaction and advertising revenues emerged as key growth drivers, climbing 81 percent to £31.5 million during the reporting period. Zilch’s business model centers on providing interest-free installment payments through a card system that customers can use for debit or credit transactions.
The company’s gross merchandise value, which measures total transaction volume across its platform, expanded 73 percent to £1.9 billion. This metric indicates growing merchant adoption and increased customer spending through Zilch’s payment infrastructure.
Risk Management and Credit Provisions
Despite strong revenue performance, Zilch more than doubled its provision for credit losses to £27.4 million, reflecting the inherent risks in unsecured lending. These provisions represent funds set aside to cover potential payment defaults as the customer base expands.
The increase in credit loss provisions aligns with industry trends where BNPL providers balance growth ambitions with prudent risk management. As regulatory scrutiny increases across the sector, maintaining adequate reserves becomes increasingly important for sustainable operations.
Product Development and Market Position
Chief Executive Officer and co-founder Philip Belamant attributed the company’s success to strategic product development alongside customer acquisition efforts. “Our growth is as much a result of successful product development as it is ongoing customer acquisition” Belamant stated in the annual report.
The company launched its pay over three months product offering during the previous year, expanding payment flexibility for consumers. This product enhancement demonstrates Zilch’s commitment to diversifying its service portfolio beyond traditional BNPL structures.
eBay Partnership and Investor Backing
Zilch benefits from strategic investor backing, including support from e-commerce giant eBay. This partnership provides both financial resources and potential integration opportunities within eBay’s marketplace ecosystem.
The investor relationship positions Zilch advantageously within the competitive BNPL landscape, offering access to established merchant networks and consumer bases that can accelerate growth initiatives.
IPO Prospects and Market Outlook
Market observers frequently cite Zilch as a potential initial public offering candidate, given its strong growth trajectory and market position. However, Belamant has previously indicated openness to listing outside the UK market, citing limited incentives for retail investors in British stocks.
This perspective reflects broader concerns within the UK fintech sector regarding domestic capital markets’ ability to support high-growth technology companies. The potential for international listings could influence where emerging UK fintechs choose to access public capital.
As Zilch continues expanding its customer base and refining its product offerings, the company faces ongoing challenges common to the BNPL sector, including regulatory compliance, credit risk management, and intensifying competition from both established financial institutions and emerging fintech competitors.