Zilch Company Profile and Market Analysis

Zilch is a UK-based fintech company that offers a buy now, pay later (BNPL) service. It was founded in 2018.

Zilch's BNPL service allows consumers to purchase products and pay for them over time, with no interest or fees. This service is available at various online retailers and in-store.

The company is led by CEO Philip Belamant, who has a background in fintech.

Zilch operates as a payment processing company, but it's not just about processing payments. They also offer logistic services, and have partnerships with various developers, marketing platforms, social networks, loan issuers, and financiers.

Their business model is built around a FinTech platform, which is authorized by the FCA. This platform allows customers to make purchases and pay for them later, with the option to choose from 2-12 month payment terms.

The company's revenue streams are not explicitly mentioned in the provided article sections, but we can infer that they make money through various means, including partnerships and interest-free loans.

Zilch makes money through various revenue streams. Its business model is designed to generate income in multiple ways.

One key revenue stream is through interest charges on outstanding balances. If a customer fails to pay their balance in full each month, Zilch charges interest on the remaining amount.

Another revenue stream comes from fees associated with late payments. When a customer misses a payment deadline, they're charged a fee on top of the interest.

Zilch also earns interest on the cash it holds in reserve. This is a common practice among financial institutions, and it helps to offset any losses from late payments or other revenue streams.

By diversifying its revenue streams, Zilch minimizes its reliance on any one source of income. This approach helps to ensure the company's financial stability and growth.

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Interchange fees are a key part of Zilch's business model, derived from the customer's usage of the debit card.

These fees are applied whenever you purchase something using a debit or credit card, and are ultimately paid by the merchant that accepts the payment.

The interchange fee cap in the United Kingdom has recently been upped, with Mastercard and Visa capping the fee at 1.15 percent for debit cards and 1.50 percent for credit cards since October 2021.

This is a significant increase from the previous cap, which was 0.20 percent for debit cards and 0.30 percent for credit cards.

Mastercard, the issuer of the card, and Zilch share the revenue they derive from the usage of the card, although the exact percentage split is not publicly disclosed.

This revenue is a major source of income for Zilch, and is likely a key factor in the company's ability to offer cashback rewards to its customers.

Cashback rewards are essentially a loss leader, designed to lure in additional customers and encourage them to use the card more frequently.

By combining BNPL offerings with a debit card, Zilch is able to maximize its interchange earnings, as customers are more likely to use the card for purchases.

This also allows Zilch to reliably assess default risk, as it can tap into a customer's bank statements to get a better understanding of their financial situation.

As a result, Zilch's current default rate on loans is a relatively low 1 percent.

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Zilch has raised a total of $389.3 million across six rounds of venture funding, with notable investors including Gauss Ventures, Goldman Sachs Asset Management, and Ventura Capital.

Zilch's latest funding round was a Series C round on October 31, 2023, led by eBay, although the amount raised was undisclosed.

The company has 30 institutional investors, including Gauss Ventures, eBay, and Curve, and 22 angel investors, including Simon Nixon.

Zilch's valuation is currently at $2 billion, after extending its Series C round by another $50 million in June 2022.

The company's funding rounds include a Series C round in September 2021, which raised $110 million, and another Series C round in June 2022, which raised $50 million.

Here is a list of some of Zilch's notable investors:

Zilch has some tough competition in the market. Klarna, a Swedish company, is currently ranked first with a total funding of $4.19 billion, making it a significant player in the industry.

The top five competitors of Zilch are Klarna, Afterpay, Zip, Sunbit, and Snap Finance. These companies are all focused on providing point-of-sale financing solutions to consumers.

Here's a breakdown of the top five competitors:

Zilch's competitors have a significant advantage in terms of funding, with the top five companies having a combined total of over $4.8 billion in funding.

In the competitive landscape of the market, several companies are vying for dominance.

One of the main competitors is Company A, which has been a major player for years. They offer a wide range of products and services that cater to the needs of various customers.

Company B is another significant competitor, known for its innovative approach to business. They have a strong online presence and a loyal customer base.

In addition to these two companies, there are several smaller players that offer alternative solutions. These alternatives often focus on specific niches or customer segments.

Zilch's competitors are primarily point-of-sale financing providers, with some also offering digital wallet and payment solutions.

Klarna, the overall rank 1st competitor, has received $4.19B in total funding from investors such as HarbourVest Partners and CPP Investments.

Afterpay, the 2nd ranked competitor, was acquired and has a total funding of $35.4M from investors like Matrix and Tencent.

Zip, the 3rd ranked competitor, is a public company with a total funding of unknown amount.

Sunbit, the 4th ranked competitor, has received $159M in total funding from investors like Credit Suisse and J P Morgan.

Snap Finance, the 5th ranked competitor, has a total funding of $30.1M from investors such as Summit Partners and BMO Harris Bank.

Venmo, the 6th ranked competitor, has a total funding of $1.3M from investors like New Enterprise Associates and Accel.

MoneyGram, the 7th ranked competitor, is an acquired company with a total funding of unknown amount.

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Uplift, the 8th ranked competitor, has received $695M in total funding from investors like Trinity Ventures and Fortress Investment.

Verse, the 9th ranked competitor, has a total funding of $41.2M from investors such as Lagfe and Spark Capital.

Katapult, the 10th ranked competitor, is a public company with a total funding of unknown amount.

Zilch, the 18th ranked competitor, has a total funding of $390M from investors like Sands Capital Ventures and Innova Capital.

Here is a list of the competitors' overall ranks, along with their total funding:

Zilch operates in the B2C space in the FinTech and Retail market segments.

Zilch's business model involves alternative lending and payments, which are key components of the FinTech sector.

Zilch also serves in the e-commerce enablers segment of the Retail market.

Here are the specific market segments where Zilch operates: