Zilch turns profitable for first time, appoints former Aviva CEO to board | Wilnesh News

British fintech company Zilch reported its first-ever monthly profit on Tuesday, marking a major milestone as the company seeks an eventual initial public offering.

In trading update, Zilch competes with the likes of Klarna clogged In the “buy now, pay later” space, the company said it achieved an operating profit in July 2024, making it profitable four years from its founding date – better than other major consumer fintech companies that have also managed to break even. Faster.

Meanwhile, rivals Starling and Monzo took more than three and four years respectively to make their first profits. Other companies are trying to reach profitability faster. For example, digital banking startup Revolut broke even for the first time just two years after launch.

Zilch also said its annual revenue run rate topped £100 million ($130 million), double the run rate reported last year.

Zilch CEO and co-founder Philip Belamant told CNBC on Tuesday that despite the current higher interest rate environment, the company can still achieve profitability by growing its business rather than cutting back like other fintech companies.

“If you think about the last two and a half, three years, a lot of venture-backed companies, especially high-growth fintech companies, have had to cut back on expenses to become profitable. Some of them have actually cut back on expenses. Along the way,” Belamant told CNBC’s “Squawk Box Europe.”

“It’s not easy. For Zilch, we took a different approach. We looked at this and said let’s make it profitable our way,” Belamant added.

On Tuesday, Zilch also announced the appointment of former Aviva CEO Mark Wilson to its board of directors. Wilson, who was appointed non-executive director, said he was “delighted” to join the company at a critical time and “further help Zilch lead its path to sustainable success as a category leader.”

Zilch CEO Belamant told CNBC in June that he hoped to take the company public within the next 12 to 24 months. That same month, the company announced it had raised $125 million in initial debt financing from Deutsche Bank.

The deal, which gives Zilch the option to draw up to $315 million in credit from Deutsche Bank and other banks, is expected to help the company triple its overall sales over the next few years, Zilch said.

Zilch’s UK rival Klarna is also planning to go public in the medium term, with CEO Sebastian Siemiatkowski previously telling CNBC it was not “impossible” for the company to go public as early as this year ”.