Customer activity on Zilch's platform drove a substantial revenue increase, though the fintech's path to profitability remains steep. The London-based lender, which is preparing for a public listing, posted full-year revenues of £147.5m—a 36 percent jump—while operating losses ballooned to £35.9m, nearly triple the prior year's £12.5m deficit, according to newly disclosed financial results.

Chief executive Philip Belamant characterized the period as transformative for the company, which operates a suite of lending and payment products. Zilch achieved a $300m (£224m) annual run rate during the year, the CEO noted, underscoring momentum in the business.

The fintech, which offers installment loans, a buy-now-pay-later option, and a debit card, saw gross merchandise value—the total value of transactions processed through its platform—climb 28 percent to £2.4bn for the year ending March 2026. Customer acquisition and brand investment expenses, combined with a larger provision for credit losses tied to longer-duration loan products, drove the widening losses.

User engagement metrics showed steady expansion. The platform's active user base grew 21 percent to 970,000, while the average annual spending per active customer increased six percent to £2,500.

Zilch, which counts Goldman Sachs and eBay among its backers and was valued at $2bn during a 2021 funding round, generates revenue through transaction fees and advertiser-subsidized services. The company is reportedly in talks with investment banks about launching an IPO as soon as next year.

FY26 was a foundational year for Zilch. We delivered strong financial growth while making deliberate investments in our products, technology and infrastructure to strengthen the business and position ourselves for the next phase of expansion. We're confident in the strength and profitability of our business model, and we're now seeing the results of those investments. Reaching a $300m annual run rate and delivering two consecutive quarters of adjusted profit before tax demonstrates how the foundations we built during FY26 are translating into accelerated growth and stronger financial performance.

Philip Belamant, CEO and co-founder, Zilch

Source: Tech.eu