Zilch, a London-based fintech, revises its US expansion in favour of bolstering its UK operations.
- The company has experienced its first profitable month since its inception four years ago.
- Despite curtailing its US operations, Zilch maintains partnerships and regulatory status in the country.
- Zilch’s CFO highlights improved returns and financial performance in the UK market as a decisive factor.
- Revenues nearly doubled to £57.1m, with losses reduced, setting the stage for a potential IPO.
Zilch, a prominent fintech company from London, has announced a strategic shift in its business operations. The company has opted to reduce its activities in the US to focus on the flourishing UK market where it has achieved significant financial milestones. This decision reflects a shift from its former strategy aimed at expanding aggressively in the United States.
The financial firm has marked a notable achievement by recording its first full month of operational profit, a milestone reached just four years after its inception. This progress is underscored by Zilch’s chief executive, Philip Belamant, who attributes this success to strategic enhancements in product offerings, better cost structures, and optimised credit management.
Despite the withdrawal from its expansionary plans in the US, Zilch emphasises that it will continue to maintain its strategic partnerships with American vendors and uphold its regulatory standing in the market. The company acknowledges that US market expansion will be reconsidered when conditions align with the ability to secure substantial growth capital.
The decision to curtail US operations came after Zilch’s CFO, Hugh Courtney, pointed out that investing in the UK operations offered a compelling and measurable return on investment. With the cost of living rising, the company is focusing on providing cost-saving solutions to UK clients, thereby enhancing its market position.
In the fiscal year ending March, Zilch reported impressive financial figures, with revenues reaching £57.1 million, representing a 90% increase from the prior year. Concurrently, pre-tax losses decreased by 30% to £50.2 million. This financial health is paving the way for a potential IPO, with a noteworthy £100 million debt financing deal secured with Deutsche Bank in preparation.
Zilch’s strategic refocus on the UK market amidst financial advancements illustrates its adaptability and forward-thinking approach.
