Zilch secures £133.3m to scale AI merchant platform and one-click checkout
This article covers Zilch, a UK fintech firm, which has raised more than £133.3m ($175m) in a mixed debt and equity round as it prepares to roll out new products and widen its merchant partnerships. The funding, which includes an expanded Deutsche Bank-led securitisation, is intended to support product development, marketing and potential acquisitions and will affect merchants and consumers in the payments sector.
Zilch, the UK fintech that reached unicorn status, has raised more than £133.3m ($175m) in a mixed debt and equity round as it prepares to roll out new products and widen its merchant partnerships. The financing and an expanded Deutsche Bank-led securitisation provide the company with capital to invest in product development, marketing and potential acquisitions at a time when consumer payments remains a crowded market.
Why it matters
Zilch’s raise is notable partly because it combines equity and debt, including an expanded securitisation facility, rather than a straight equity round. That mix reflects how mature fintechs are balancing capital structures as they pursue growth while managing financing costs. The company also says new products have started to shift its revenue mix, which could matter for rivals and merchants that rely on payments partners to drive acquisition.
Inside the product
Zilch has recently launched two major offerings it says will change how merchants engage customers. Intelligent Commerce is described as an AI-powered platform that converts live engagement data into real-time insights for merchants. Zilch says this product has become one of its fastest-growing revenue streams.
The company is also preparing Zilch Pay, a one-click checkout experience for Zilch customers scheduled for H1 2026. Zilch positions this as a way to capture more of consumers’ wallets and to simplify checkout for merchants.
Zilch reports more than 5.3 million customers and says its most engaged users pay with the service almost daily, with an average customer transacting about 60 times a year. The platform connects users to thousands of retailers, naming Amazon, eBay, Tesco and Sports Direct as examples of merchant partners — relationships that are intended to help retailers acquire customers more efficiently and increase sales. Since launch in 2020, Zilch says it has processed over £5 billion of commerce.
Founder perspective
In the announcement, Philip Belamant, CEO and Co-Founder at Zilch, said:
In just five years, we have rewired the relationship between brands and their customers, offering a different way to pay that brings mass benefits to both consumers and merchants. This funding reflects strong confidence in our team, strategy and execution, enabling us to continue scaling at pace. Our newly launched products are already driving outsized growth, and with the support of a world-class group of debt and equity investors, we’re well positioned for the next phase of expansion. In a market where many have found raising capital difficult, the network and strategic leadership of my co-founder, Sean O’Connor, have been instrumental in helping us achieve this outcome and we are excited for the year ahead.
In the announcement, Hugh Courtney, Chief Financial Officer at Zilch, said:
Our ability to attract world-class investors at a time when many remain highly selective in their capital deployment is testament to the strength of the business we are building. Future-proof innovation, diversified revenue streams and a highly engaged customer base are all critical factors in our rapid growth and we look forward to working with our shareholders to build on these successes, eliminate high-cost credit and rewire the economics of commerce.
Who’s backing the round
The round is led by KKCG, with participation from BNF Capital and other strategic investors, and includes an expansion of Zilch’s securitisation programme arranged by Deutsche Bank. The announcement frames the package as a combination of equity and debt to support continued product development, marketing and potential acquisitions.
In the announcement, Karel Komarek Jr., CEO of KKCG US Advisory, said:
KKCG is all about finding new solutions in established industries and creating sustainable value. Zilch’s impressive track record demonstrates that its approach to using technology to challenge the status quo and re-engineer the credit landscape delivers exceptional value for consumers and businesses. We’re looking forward to being part of this exciting next stage of their journey.
If you're researching potential backers in this space:
- Explore our list of fintech venture capital firms in the UK
- Browse our directory of fintech angel investors in the UK
The bigger picture
Zilch’s financing comes as European fintechs face tighter funding conditions and greater scrutiny over unit economics and credit risk. The use of a securitisation facility alongside equity reflects a broader trend in which payments and lending businesses lean on structured finance to scale originations without diluting shareholders further.
For UK startups in payments and fintech, Zilch’s move underlines two currents: continued investor appetite for differentiated product-led models and a shift toward more complex capital structures to support growth. As Zilch rolls out Intelligent Commerce and prepares Zilch Pay, the results will be a useful indicator of whether merchant-focused AI tools and streamlined checkout can materially change customer acquisition economics across the region.
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