Zilch Exceeds $130 Million in Revenue and Marks First Monthly Profit

Ad-subsidized payments network Zilch recorded its first profitable month in July.

In the same month, Zilch’s revenue run rate exceeded $130 million, according to a Tuesday (Sept. 3) press release.

“The speed at which Zilch has achieved profitability places it in the same bracket as European FinTech giants such as Revolut, Starling Bank and Monzo,” the release said. “All four companies also reported revenues in excess of $130 million within three to five years, with Zilch almost doubling revenues in the year to March 2024.”

By comparison, the time it takes the average tech company to surpass $100 million in revenue is eight to 10 years in the United States, 15 in Europe and 17 in the United Kingdom, per the release.

“While many have cut their way to profit, we’ve doubled our revenue year on year, expanded our team, saved our 4 million customers over half a billion dollars in fees and interest costs, and generated over $3 billion in new sales for merchant partners through our ad-subsidized payments network,” Zilch co-founder and CEO Philip Belamant said in the release.

The news came nearly three months after Zilch announced it raised $127 million in debt financing via Deutsche Bank, money the company said would help it launch new products for a larger customer base as it gets ready to go public.

Zilch, which calls itself the “world’s first direct-to-consumer, ad-subsidized payments network,” allows customers to buy products and pay off their debt in monthly, interest-free installments.

Consumers are turning to pay later plans as they seek ways to better manage their finances. Among the options merchants need to consider are installment plans linked to consumers’ existing cards.

“Card-linked installment plans help merchants grow and keep things running smoothly despite changing consumer preferences,” PYMNTS wrote last month.

Fifty-seven percent of merchants said they “think consumers will switch to competitors offering these plans, emphasizing the need for innovation,” the report said. “Moreover, 1 in 5 acquirers believe merchants are highly likely to switch to providers that allow them to offer these plans.”

Research showed that more than 70% of merchants prefer shoppers to use their existing general-purpose credit card for installments over other pay-later programs.