Zilch scores deal with eBay and holds $2bn valuation

Buy now, pay later turned ad-subsidised payments network Zilch has secured a deal with eBay that sees its valuation remain at £1.65bn ($2bn).

As first reported by The Telegraph, the fintech, founded by Philip Belamant and Sean O'Connor in 2019, has secured a “low single digit million” equity investment from eBay Ventures.

The deal with eBay follows £20m, raised from current investors, earlier this year.

Zilch first hit the ‘double unicorn’ valuation in 2021 when it closed its Series C round and became the fastest ever unicorn.

The oversubscribed $110m Series C funding round was led by Ventura Capital and Gauss Ventures and closed in under a month.

In 2022 the startup topped up the round with an additional $50m, retaining its valuation amid a wave of down rounds.

The fintech has previously seen participation from investors including Goldman Sachs Asset Management, DMG Ventures, M&F Fund and Limited Ventures.

The Klarna rival, which separates itself from other BNPLs through its customer rewards and ad subsidisation, surpassed 3.5 million customers in August, with the average customer using the product 100 times a year, according to CEO Belamant. 

“Zilch has already driven over £1.5bn in commerce to retailers and put over £300m of savings and rewards back into the pockets of customers. And this is just the beginning,” Belamant said at the time.

He added that the company is on a “clear course” to profitability and to process more sales over the next 12 months than it has to date.

Zilch declined to comment.