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UK BNPL unicorn Zilch targets US after $110m raise

Zilch has raised $110 million in a Series C funding round that sees the London-based buy now, pay later lender hit a $2 billion valuation at record speed.

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UK BNPL unicorn Zilch targets US after $110m raise

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Ventura Capital and Gauss Venture led the round, which comes eight months after a Series B at a $500 million valuation.

Zilch only opened in beta in 2019, 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.

Working with Monavate, the company has built an over the top platform meaning that it is merchant agnostic, letting customers tap to pay wherever they want.

With the BNPL market booming, Zilch now has well over a million customers and is adding 200,000 a month.

The firm plans to use the latest funding for a push into the US, where it recently acquired debt funding platform Neptune Financial to fast-track its launch stateside.

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Comments: (4)

A Finextra member 

I wonder how long will it be till the wheels come off BNPL and we see Payday loans Wonga Mk2 hitting the press? Shall we run a sweep on this?

A Finextra member 

BNPL and Payday loans are not comparable. BNPL is interest free (0% APR) with an average value of £60-£70 and 60 day term. Wonga loans had a similar term and average value but used to display a representative interest rate up to 5,853% APR on its website. #apples&oranges

A Finextra member 

Payday loans were regulated out of viability. Regulation will come to BNPL. Klarna appears to be wisely  reducing its dependency on BNPL and is on an aggressive buying spree ahead of regulation. Time will tell on this one

A Finextra member 

HMT BNPL Consultation suggests that the Government is advocating proportionate regulation towards BNPL which could not be applied to paydoay loans since they were/are inherently much more dangerous and totally unsustainable. 

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