InvestIndependently confirmed2 publishers2 min readPublished
Zilch asks banks to pitch for an IPO sources say may price below $2 billion
Zilch has invited banks to pitch for a float as early as 2027, against a $2 billion private valuation of about 14 times revenue. The listing would test what public buyers will pay for a 2021 fintech price attached to a lender still reporting losses.
The Investor · Invest desk
What happened
- Zilch set the $2 billion valuation in a 2021 round, in what Crowdfund Insider called a more exuberant period for fintech, and held it in later raises including one in 2025.
- Its loss narrowed to £10.5 million in the year to March 2025 from £50 million a year earlier, while revenue almost doubled to £110.3 million.
- London is the preferred venue, though New York and other European exchanges have not been ruled out.
- In January Zilch announced plans to buy Lithuania's Fjord Bank as part of an international expansion that brought it a European banking licence.
Why it matters
- exposure Goldman Sachs, Deutsche Bank, eBay Ventures and DMG's venture arm back a company valued privately at $2 billion; a float below that would put a public number under their marks.
- constraint Management wants a profit by the time of any listing, so the 2027 date depends on the next set of accounts as much as on market conditions.
- decision Belamant has tied London's appeal to pension-fund money for growth companies and retail-investor incentives, so the venue he picks will show whether he thinks those reforms arrived.
- precedent A Zilch float would give the UK digital lenders and neobanks the exchange has courted alongside it a public reference price for their own listings.
PYMNTS converted Zilch's loss figures at roughly $1.32 to the pound [6][18]. At that rate, the £110.3 million of revenue for the year to March 2025 is about $146 million [5][19]. The $2 billion private mark is about 13.7 times that figure [20]. Each turn of the multiple is worth about $146 million of valuation [23].
Two people close to the discussion told the Financial Times the IPO is unlikely to reach $2 billion [4]. I think they are right about the multiple. The case against them is growth. The loss shrank by £39.5 million in one year and now equals about 9.5% of revenue [21][24]. If revenue doubles again before a 2027 float, to about £221 million, a multiple of roughly 6.9 times, half of today's, would still produce $2 billion [22].
Zilch takes in about £18 a year for each of its roughly six million customers [25][8], and part of that comes from targeted advertising built on transaction data [8]. Interest is the charge pay-later products were designed to avoid. Yet PYMNTS Intelligence found that 82% of BNPL customers who use four or more providers would pay it to get a longer repayment schedule, against 46% of those who use one [14]. PYMNTS wrote that the gap "suggests that BNPL's most active customers could provide a natural market for longer-duration credit" [15]. The survey covers BNPL users in general, not Zilch's customers.
The other outcomes are a later date or a different exchange. People familiar with the process say talks are at an early stage and the timetable could change [10]. A London float would be a boost for the exchange after years of falling listings and a run of takeovers that cut the number of quoted UK companies [16]. A Zilch spokesperson said the firm is focused on executing its growth strategy after a strong 12 months and that "all strategic options remain open" [9].
A price range at or above $2 billion would prove that view wrong. It would show that public buyers accept the 2021 figure as a value, and that it was more than a price private rounds carried forward [3]. Neither report includes a target valuation or the size of the raise.
What to watch
- Zilch's accounts for the year to March 2026, the first evidence of whether the £10.5 million loss has become the profit management wants before listing.
- The banks appointed and the exchange named in any intention-to-float notice, with New York the alternative to London.
- Whether interest-bearing, longer-duration credit appears in Zilch's products after the Fjord Bank purchase.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence55
- Adoption50
- Hype gap+15
- Incentives45
- Confidence50
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
Zilch has invited investment banks to compete for advisory roles on a possible stock market debut as early as 2027.
- [2]
London is viewed as the preferred listing location, though New York and other European exchanges have not been ruled out.
- [3]
Zilch reached a $2 billion valuation in a 2021 funding round, during what Crowdfund Insider called a more exuberant period for fintech, and has held that figure in later raises, including a 2025 round.
ReportedSupportedSource: Crowdfund Insider2 sources— create a free account to open themView cited source - [4]
Two sources close to the discussion told the Financial Times that the IPO would be unlikely to generate the $2 billion valuation.
ReportedSupportedSource: PYMNTS, citing the Financial Times2 sources— create a free account to open themView cited source - [5]
In the year to March 2025 Zilch reported a £10.5 million loss, down from £50 million the previous year, while revenue almost doubled to £110.3 million.
- [6]
PYMNTS gave Zilch's losses as £10.5 million ($13.9 million) in its last financial year and £50 million ($66.3 million) the year before.
- [7]
Zilch management is targeting profitability by the time any listing occurs.
- [8]
Zilch serves roughly six million customers and also generates income from targeted advertising based on transaction data.
- [9]
A spokesperson for Zilch said the firm is focused on executing its growth strategy after a strong 12 months and that "all strategic options remain open."
- [10]
People familiar with the process stressed that talks remain at an early stage and that the timetable or venue could still change.
- [11]
Zilch's backers include Goldman Sachs, Deutsche Bank, eBay Ventures and the venture arm of Daily Mail owner DMG.
- [12]
Chief executive Philip Belamant has previously spoken about UK market reforms, including greater pension-fund participation in growth companies and incentives for retail investors, as conditions that would make a London listing more attractive.
- [13]
In January Zilch announced plans to purchase Lithuania's Fjord Bank, part of an international expansion plan that granted the company a European banking license.
- [14]
PYMNTS Intelligence found that among BNPL customers using four or more providers, 82% would pay interest for a longer repayment schedule, versus 46% of single-provider users and 70% of those using two or three; interest is the thing pay-later products were designed to avoid.
- [15]
PYMNTS wrote: "The gap suggests that BNPL's most active customers could provide a natural market for longer-duration credit."
- [16]
A Zilch listing would be a notable boost for the London Stock Exchange after years of declining listings and a string of takeovers that reduced the number of quoted UK companies.
- [17]
The London Stock Exchange has actively courted Zilch alongside other UK digital lenders and neobanks.
- [18]
PYMNTS's conversions imply an exchange rate of about $1.32 per pound.
- [19]
Zilch's £110.3 million of revenue equals about $146 million at the implied rate.
- [20]
The $2 billion valuation is about 13.7 times Zilch's revenue for the year to March 2025.
- [21]
Zilch's loss narrowed by £39.5 million in one year.
- [22]
If revenue doubled to about £221 million (about $292 million), a multiple of about 6.9 times, half the current 13.7, would still equal $2 billion.
- [23]
Each one-turn change in the revenue multiple moves Zilch's implied valuation by about $146 million.
- [24]
Zilch's £10.5 million loss equals about 9.5% of its £110.3 million revenue.
- [25]
Zilch's revenue works out to about £18 per customer per year.
Sources
2 independent publishers whose own reporting we read for this story.
- crowdfundinsider.comUK Fintech Zilch Moves Toward 2027 London IPO
1 article · October 2, 2026
- pymnts.comZilch Looks to Take BNPL Firm Public in 2027
1 article · September 30, 2026
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Topics
- London stock market listingsFollow
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Entities
- ZilchFollow
- London Stock ExchangeFollow
- Goldman SachsFollow
- Philip BelamantFollow
- Fjord BankFollow
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- Deutsche BankFollow
- Financial TimesFollow