Zilch nets $175M as eyes "strategic" M&A

UK-based fintech company Zilch has secured over $175 million in a recent funding round, signaling continued growth and strategic ambitions in the competitive buy-now-pay-later (BNPL) market. The funding will enable Zilch to expand its marketing efforts, accelerate product development, and pursue mergers and acquisitions, solidifying its position within the European fintech landscape. This investment highlights the ongoing interest in innovative financial services, despite broader economic challenges. The funding round was led by Czech investment group KKCG, with contributions from BNF Capital and other strategic investors. The round also includes an expansion of Zilch's existing £100 million credit facility with Deutsche Bank. Zilch, boasting over 5 million customers and backed by investors such as Goldman Sachs and eBay, aims to leverage this capital to further scale its operations and brand recognition. This financial injection will likely intensify competition within the BNPL sector, directly impacting companies such as Klarna and Clearpay. Zilch, which offers advertising-subsidized BNPL services, allows customers to pay via debit or credit cards with the option to split payments into interest-free installments. The company's focus on strategic M&A suggests a move to consolidate its market position and potentially acquire complementary technologies or customer bases.