Zilch scoops $110m in debt and equity from Goldman Sachs and Daily Mail owner DMGT

After Klarna’s record $1bn raise earlier this year (and subsequent $639m raise just three months later), smaller Buy-Now-Pay-Later players have also been reaping the rewards. 

BNPL fintech Zilch has raised an extra $110m in debt and equity just three months after it announced its $80m Series B, according to Sky News.

Zilch’s latest funding effort, which is an extension of the aforementioned Series B, was led by Goldman Sachs’ asset management and private credit team and DMG Ventures, the investment arm of Daily Mail owner Daily Mail & General Trust (DMGT).

"As our customer numbers continue to grow, we've taken the decision to raise additional capital to service this phenomenal demand,” CEO and founder Philip Belamant told Sky News.

"We're delighted that well-respected institutions such as Goldman Sachs and DMG Ventures share our vision of what credit should be in today's world and how that can be delivered directly to customers in the most responsible way."

The fintech will use the fresh cash to help it expand further into the US, a goal it first outlined back in April when it raised the first tranche of its Series B.

Zilch will also work on growing its customer base, which currently stands at over 700,000, and continue building its brand profile.

In November 2020, Zilch became the first UK BNPL firm to gain consumer credit authorisation from the Financial Conduct Authority (FCA), after it took part in the FCA’s regulatory sandbox programme.  

Unlike traditional BNPL fintech, such as the likes of Klarna and Clearpay,Zilch allows customers to pay in interest-free instalments at any online retailer where Mastercard is accepted, not just the ones supported by its platform. 

Through the use of open banking, the fintech ensures that customers can afford to repay their deferred purchases by using real-time insights into a consumer’s financial wellbeing and current expenditure.