Zilch Boss Dismisses Rival's Stock Market Woes
The chief executive of one of London's most anticipated fintech listings has brushed aside concerns about the recent stock performance of rival firm Klarna, following his own company's successful funding round. Philip Belamant, CEO of the consumer payments platform Zilch, addressed market sentiment after his firm secured a significant capital injection.
When questioned by City AM on whether Klarna's falling share price indicated a wider cooling of appetite for fintech stocks, Belamant responded with composure. He noted that "there's always a bit of downward pressure" and that such patterns were not unusual following a company's initial public offering (IPO).
A Tale of Two Fintech Strategies
Belamant drew a distinction between different business models within the sector. He suggested that companies which were "renting the audience from the merchant" inherently possessed a weaker direct relationship with the end customer. These firms, he implied, would need to work harder to build those crucial connections.
Regarding Klarna's specific situation, the Zilch boss displayed a lack of alarm. "We don't necessarily see this as a big drop," he added, contextualising the market movements. Klarna, to which Zilch is often compared due to its 'buy now, pay later' offerings, saw its shares jump 15 per cent from its IPO price to $45.82 during its Wall Street debut in September. However, the stock has since declined, losing nearly a fifth of its value to trade at $37.65.
Meanwhile, Klarna continues to advance its strategic pivot towards becoming a full-service digital bank. A series of new product launches are aimed at competing directly with traditional high-street lenders. A key milestone was reached earlier this year when the firm obtained an Electronic Money Institution (EMI) licence from the FCA, paving the way for a future debit card launch in the UK.
Zilch Lays the Groundwork for Future Growth
Zilch itself is steadily progressing towards a potential public listing. Belamant, who also co-chairs Innovate Finance's fintech unicorn council, has previously expressed strong support for London as a listing venue. Recent corporate activity seems to support this trajectory.
Over the past fortnight, Zilch has applied to strike two dormant subsidiaries from the official Companies House register. When pressed on whether this was a move to tidy up the corporate structure ahead of an Initial Public Offering (IPO), Belamant offered a telling, if indirect, response.
"You know the trajectory that we're on and the course we're taking… obviously everything has some meaningful step towards that outcome," he stated. He was quick to clarify, however, that this specific action did not signal an imminent listing, characterising it instead as "housekeeping to make sure that we have the business in the most optimal state."
These developments follow Zilch's successful raise of $176.7 million (£134 million) in a combined debt and equity funding round. The investment was led by KKCG. Significantly, the company has maintained its $2 billion valuation first achieved in 2022.
The fresh capital is earmarked to fuel the expansion of Zilch's advertising technology product, Intelligent Commerce. Belamant described the platform as the company's tool to "bring brands more value and better return on ad spend." This growth ambition is backed by impressive financials; in its latest financial year, Zilch’s revenue surged by 93 per cent to reach £110.3 million, cementing its status as the UK's fastest-growing fintech unicorn.
