Zilch, a UK-based startup competing with the likes of Klarna in the buy now, pay later market, has picked up an additional $30 million in funding just weeks after securing a consumer credit authorisation with the Financial Conduct Authority.
Investors in the round include co-founder of comparison website MoneySuperMarket, Simon Nixon and Curve investor, Gauss Ventures. The latest top up follows a $10 million capital raise in September.
Zilch is looking to distinguish itself in the crowded BNPL arena by connecting directly with customers and using soft background credit checks performed by Credit Kudos via Open Banking to determine affordability. The product can be used to garner interest-free credit at any online shop where Mastercard is accepted.
Having released its original Beta product in August 2019, the firm says it is now signing up 15,000+ new customers per month.
Philip Belamant, founder and CEO of Zilch, says: “Zilch ensures customers never over-borrow. We make use of Open Banking and AI along with soft credit checks to determine each customer's level of affordability. As a result, Zilch’s customers rarely default and make use of the product as a cash flow management tool, which has proven to be of huge value to our customers.”
The annual Finextra Fintech Outlook survey, developed in association with Smith & Williamson, seeks to gather the views and opinions of founders and senior management of the Fintech community in the UK with regards to business confidence, talent, tax, funding and the outlook for the future. Click here to participate.