British fintech Zilch on hunt for overseas bid targets

Zilch, the consumer lender which has become one of Britain's fastest-growing fintech companies, has begun a search for international takeover targets as it accelerates its expansion ahead of a bumper stock market listing.

Sky News understands that Zilch, which is run by co-founder Philip Belamant, is working with advisers to identify peers outside the UK which it can acquire in the coming months. The company, which is regulated in the UK and counts eBay among its investors, has amassed a customer base of more than five million people.

Money latest: Another airline faces baggage fees investigation It is now among the UK's most valuable fintechs, making its future public market debut a hotly contested prize for stock exchanges in London, New York and elsewhere. Mr Belamant has been an active participant in talks with regulators and policymakers about reforms to London's listings regime amid growing concerns about the relative attractiveness of UK public markets.

Last year, he warned that Zilch could float outside the UK without meaningful efforts to incentivise "retail investors to buy and hold British stocks". Sources close to the company said Zilch had generated more than £750m in savings on interest and fees for customers since its launch.

Payments through its platform now have a gross merchandise value of more than £4bn, they added. Zilch has annual revenues of more than £150m, making it well-placed to snap up rivals which are too small to raise additional capital or list on the public markets, according to insiders.

In recent months, the company has also been exploring its own private share sale to raise funding, having hired Citi to work on the mandate. Its last fundraising valued the company at about £1.5bn.

Other Zilch investors include Goldman Sachs and Ventura Capital. Zilch secured authorisation from the City watchdog in 2020 and now offers customers a digital debit Visa card earning up to 5% of spending in rewards.

In the same app, customers can switch to a credit card, allowing customers to spread repayments with zero interest over six weeks or three months, enabling them to build their credit record. The company differentiates itself from other Buy Now Pay Later companies because it is already regulated by the Financial Conduct Authority.

In total, Zilch has raised £500m in equity and debt since it was founded. The company employs more than 250 people.

Zilch declined to comment on Friday..