In a significant development for the UK fintech sector, Zilch has announced a substantial increase in its revenues for the year 2025. This rise is attributed to both a surge in new customer acquisitions and the launch of innovative products. As the financial world watches closely, Zilch’s growth is being propelled by its unique model that combines advertising-subsidized BNPL services, providing a competitive edge against prominent players like Klarna and Clearpay. The fintech’s approach involves offering customers interest-free instalments via a dedicated card, making it an appealing option in the expanding BNPL market.
In earlier reports, Zilch was consistently noted for its innovative payment solutions and its rapid growth trajectory in the BNPL landscape. However, one crucial difference from previous years is the company’s strategic focus on diversifying revenue streams, particularly through enhanced transaction and advertising revenue. These efforts have been instrumental in doubling the company’s revenues, marking a significant milestone in its financial journey.
What Are the Key Financial Figures?
Zilch has experienced a 93 percent leap in year-on-year revenue, reaching £110.3 million by the end of March 2025. Simultaneously, its losses decreased by 79 percent, narrowing down to £10.5 million. Notably, the company’s transaction and advertising revenue surged by 81 percent, contributing £31.5 million. The fintech has also witnessed a 73 percent growth in its gross merchandise value, totaling £1.9 billion in goods sold.
How Has Customer Growth Influenced This Surge?
The significant customer growth has played a pivotal role in the revenue boost. Zilch has exceeded five million customers this year, highlighting the effectiveness of its customer acquisition strategies. However, this expansion has also led to a doubling of provisions for credit losses, climbing to £27.4 million. These provisions are essential to manage potential payment defaults.
CEO Philip Belamant reflects on this progression, stating,
“Our growth is as much a result of successful product development as it is ongoing customer acquisition.”
Zilch has maintained its position as a potential IPO candidate, with deliberations on whether to remain loyal to its UK roots in the face of international opportunities.
Belamant has voiced the possibility of an international listing unless significant incentives are present to
“retail investors to buy and hold British stocks.”
Thus, potential shifts in market strategies are on the horizon, potentially influencing Zilch’s future direction.
Increased customer attraction coupled with product diversification signifies Zilch’s adaptability in a competitive market. However, the firm’s expanded provision for credit losses indicates an acknowledgment of the inherent risks. As the BNPL industry continues to evolve, Zilch’s strategic responses to market demands will be crucial to maintaining its upward growth trend.
