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
- Who's exposed 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.
- What it limits 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.
- Who has to decide 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.
- What it sets up 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.
Next story · Invest · Oct 5
Moonshot's last private round values it at about 167 times revenue ahead of a Hong Kong IPOConfirmed3 publishers
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.
Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.
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.
- [4]
Two sources close to the discussion told the Financial Times that the IPO would be unlikely to generate the $2 billion valuation.
- [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
Topics and entities
Topics
- London stock market listings
- Buy Now, Pay Later
- Fintech IPOs