Zilch , a fintech company operating an ad-subsidised payments network, has expanded its securitisation facility by GBP 50 million, now totalling GBP 150 million. The latest round of funding saw involvement from two major global credit funds, with Deutsche Bank as the lead arranger.

The increase is expected to enable Zilch to support up to GBP 10 billion in annual transactions, marking a quick growth in both transaction volume and lending capacity just months after the initial securitisation was launched. The addition of two leading credit funds to the facility is indicative of Zilch’s growing lending portfolio and its regulatory stability. Strategic growth and improved lending capacity According to officials from Zilch, the involvement of two major credit funds in the facility reflects growing confidence in Zilch's approach.

They noted that this added support will help meet increasing customer demand while also enabling Zilch to expand its market share and financial offerings. They also emphasised that Zilch’s capital-efficient model allows each GBP 1 of financing to drive over GBP 25 in sales. Company officials further added that Zilch’s growth over the past six months has created substantial demand for the expanded securitisation.

They pointed to the company’s strong unit economics and high customer engagement model, suggesting these factors will continue to propel growth as Zilch moves into 2025. Moreover, syndicating the facility provides the flexibility needed to advance business expansion. What else has Zilch been up to? In June 2024, Zilch secured a GBP 100 million financing deal to support its expansion strategy.

This financing was aimed at supporting Zilch's growth initiatives and enhancing its ability to introduce new products to a wider customer base. Furthermore, in April 2024, Zilch extended its partnership with Amazon Web Services (AWS) to support the launch of AI capabilities across its proposition. As part of this expanded alliance with AWS, Zilch intended to leverage the latter’s artificial intelligence (AI) and machine learning (ML) solutions to improve how it serves its customers and collaborates with merchants in the future.

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