British payments app Zilch has spoken with more than 15 banks as it prepares for an eventual initial public offering, though the firm is yet to decide on a location, according to Chief Executive Officer Philip Belamant.
(Bloomberg) — British payments app Zilch has spoken with more than 15 banks as it prepares for an eventual initial public offering, though the firm is yet to decide on a location, according to Chief Executive Officer Philip Belamant.
The CEO suggested he would explore the London Stock Exchange as well as New York. “I will say we are encouraged by what we’re seeing” in London, Belamant said in an interview with Bloomberg TV on Thursday.
Belamant added that Julia Hoggett, who runs the LSE, and the UK government were “leaning in” to support firms leading into IPO and beyond, adding Zilch was a “UK born and built business.” On Thursday, Zilch staff were invited to open the London bourse to celebrate the fintech firm’s third anniversary.
Zilch is a “number of months away, not years” from profitability and continues to invest in growth, Belamant also said.
The business was valued at $2 billion when it most recently raised money in June 2022. Its 3.5 million customers take out credit to repay in installments over six weeks. The firm is also diversifying by opening its advertising sales platform to third parties and is exploring longer-term loans.
The South African CEO said he expected the UK to increase regulation of BNPL and was a “strong advocate” of tightening rules. The government has given no update since announcing in February that it would give the Financial Conduct Authority power to oversee the sector, and Sky News reported in July that the plan was on hold.
“We have not heard that is the case and we do expect the space to be regulated,” he said.
Zilch laid off 10% of its staff last year as fintech companies around the world adjust to higher interest rates and inflation. Rival Klarna Bank AB said Thursday it was on course for profitability after cutting its costs, while others such as Clearpay and ZIP have pulled out of the European BNPL market.
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