British financial technology firm Zilch recently achieved a significant milestone by reporting its first-ever month of profit. This accomplishment comes just four years after the company was founded, making it faster than other major consumer fintech companies in the market. Zilch, which competes with industry giants like Klarna and Block in the buy now, pay later sector, managed to hit profitability in July 2024, showcasing its ability to grow its business successfully.
Comparing Zilch’s journey to profitability with its competitors, it is evident that the company has outperformed others in the industry. While Starling and Monzo took more than three and four years, respectively, to make their first profit, Zilch managed to achieve this feat in a relatively shorter timeframe. This success highlights the company’s commitment to its growth strategy and its ability to navigate the challenges of the financial technology sector.
In addition to reaching profitability, Zilch also announced that it surpassed £100 million ($130 million) in annual revenue run rate, doubling from the previous year. This substantial increase in revenue demonstrates the company’s strong performance in the market and its ability to attract a large customer base. Zilch’s CEO and co-founder, Philip Belamant, attributed this growth to the company’s focus on expanding its business rather than implementing cost-cutting measures.
Unlike other VC-backed fintech companies that have had to reduce expenses to achieve profitability, Zilch took a different approach by prioritizing growth. Belamant emphasized that the company’s success was driven by its ability to scale its operations and meet the demands of its customers. This strategy enabled Zilch to thrive in a competitive market and establish itself as a key player in the fintech industry.
In a further move to strengthen its position in the market, Zilch appointed former Aviva CEO Mark Wilson to its board as a non-executive director. Wilson expressed his excitement about joining the company during a critical phase and contributing to its sustainable success as a category leader. This strategic appointment highlights Zilch’s commitment to leveraging the expertise of industry veterans to drive its growth and expansion.
Looking ahead, Zilch’s CEO Belamant revealed plans to list the company publicly within the next 12 to 24 months. The recent $125 million debt financing from Deutsche Bank will support Zilch’s growth ambitions and enable it to triple its sales volumes in the coming years. With a strong focus on scaling its business and capturing new market opportunities, Zilch is well-positioned to achieve further success in the fintech space.
Zilch’s impressive journey to profitability and revenue growth underscores its resilience and strategic vision in the competitive fintech landscape. By prioritizing growth and innovation, the company has distinguished itself as a key player in the industry and a future leader in the market. With strategic partnerships, strong financial backing, and a clear roadmap for expansion, Zilch is poised for continued success and sustainable growth in the years to come.