Zilch Considers London Stock Exchange for IPO

Zilch is reportedly exploring options for an initial public offering (IPO), with the London Stock Exchange (LSE) being a potential listing venue.

According to CEO Philip Belamant, the buy now, pay later (BNPL) firm has been in talks with officials from various stock exchanges, including the LSE, the New York Stock Exchange and Nasdaq, the Evening Standard reported Thursday (Aug. 31).

Belamant expressed his positive outlook on the LSE, highlighting the exchange’s steps and government regulatory policies as encouraging factors, according to the report. He emphasized that Zilch considers liquidity, policy, perception and the best interests of stakeholders when making such decisions.

On Thursday, Zilch executives made an appearance at the LSE to celebrate the FinTech firm’s third anniversary, suggesting that the LSE is the frontrunner for Zilch’s IPO ambitions, the report said. The company also revealed that it has surpassed 3.5 million registered customers who have collectively spent over 1.5 billion pounds (about $1.9 billion) through the platform. Additionally, Zilch customers have earned 300 million pounds (about $378 million) in rewards and savings.

Belamant further stated that Zilch is months away from achieving profitability, per the report. The company is currently evaluating its corporate finance strategy and timeline, considering the appetite for expanding into other markets versus reaching profitability sooner. The decision will depend on how the market plays out.

The interest BNPL is evident, as Klarna, another player in the industry, recently announced a return to in-month profitability, according to the report. Klarna reported a 17% year-on-year increase in revenue in the first half of the year.

Belamant said declining valuations in recent FinTech funding rounds are not seen as the primary obstacle to an IPO, but suggested that raising capital in the private market has become more challenging, particularly due to liquidity concerns arising from the closure of public markets, the report said.

While BNPL is a consumer credit solution typically sold to retailers who then allow eligible consumers to use it to pay in installments, Zilch provides its solution straight to consumers rather than retailers, Belamant told PYMNTS in an interview posted in August 2022.

“Our goal is to bring … an embedded finance solution to a consumer and let that customer carry this around and pay however they like, wherever they like, for whatever they like wherever they go, regardless of what the retailer has done,” Belamant said at the time.