Fintech Zilch announces breakthrough into operating profit

The fintech startup confirmed it reached operating profit in July and achieved a revenue run rate exceeding $130 million (£100 million) during the same month

Zilch has announced its breakthrough into operating profit for the first time since its inception four years ago.

The fintech startup, established in London in 2020, confirmed it reached operating profit in July and achieved a revenue run rate exceeding $130 million (£100 million) during the same month, although the precise profit figure for July remains undisclosed.

Additionally, Zilch reported nearly doubling its revenue in the financial year ending March 2024, up from the $39.33 million (£30 million) revenue recorded for the year to 31 March 2023.

Valued at an impressive $2 billion (£1.65 billion) as of last October, the fintech claims its swift turn to profitability aligns it with Europe’s leading fintech startups such as Revolut, Starling Bank, and Monzo.

In the current climate, where UK fintech firms are facing more intense pressure to become profitable following a climax in valuations and an investment downturn post-2021, Zilch’s milestone is notable.

This milestone fundamentally changes the game for us, said co-founder and CEO Philip Belamant on Tuesday. Profitability is something that a lot of fast-growing businesses are struggling to achieve, and I am hugely proud of the team for reaching this mark, ahead of plan.

He said: While many have cut their way to profit, we have doubled our revenue year on year, expanded our team, saved our 4 million customers more than half a billion dollars in fees and interest costs, and generated more than $3 billion (£2.3 billion) in new sales for merchant partners through our ad-subsidised payments network.

One of the UK’s biggest BNPL providers, Zilch competes with firms such as Klarna and Clearpay. The firm provides a card that allows consumers to spread payments via debit or credit over six weeks or two months interest-free, instead of utilising a checkout button like many other BNPL firms.