UK-based buy now, pay later (BNPL) FinTech firm Zilch has gained unicorn status after closing a $110m Series C funding round at a $2bn valuation.
The round was led by Ventura Capital and Gauss Ventures with numerous other notable investors. Existing investors included the likes of Goldman Sachs.
Following the success of its initial Series A funding round in September 2020, Zilch has become a “double unicorn” in just 14 months – faster than any other in the EU including the likes of high-flying Cazoo, the company said.
Earlier this year, Zilch secured $110m of debt and equity funding from Goldman Sachs Asset Management and DMG Ventures – the venture capital arm of the Daily Mail and General Trust. The funding brought the overall size of Zilch’s Series B funding round, announced in April, to $200m.
Deemed a rival to fellow BNPL FinTech Klarna, the Zilch app allows its customers to shop wherever MasterCard is accepted and spread their payment over six weeks for zero interest and zero fees.
Zilch’s users can track all their purchases in one place – whether made online or in-store – ensuring they have a transparent view of their finances as well as their repayment timelines. The BNPL service provider combines open banking technology with soft credit checks to build a personalised affordability profile for each customer.
The newly-acclaimed unicorn said it is gearing up to launch in the US and has made significant progress since it opened its offices in Miami.
The news of Zilch seeking to expand in the US is somewhat anticipated in the market. In August, Zilch entered into an agreement to acquire FinTech startup NepFin, which it said would allow the company to gain a foothold in the US market with the help of NepFin’s California Finance Lenders License and compliance and regulatory network.
Following the acquisition, Zilch said it will also be hiring a further 150+ people in the US over the next 12-18 months.
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