Zilch, the UK-based buy-now-pay-later fintech, has reported substantial revenue growth for the year ending March 2026, though the company’s path to profitability remains uncertain as losses mounted significantly.
The company generated £147.5 million in full-year revenue, representing a 36% increase from the prior year. However, losses nearly tripled to £35.9 million, driven primarily by aggressive customer acquisition spending and elevated credit costs as the platform expanded its user base.
Despite the widening losses, Zilch achieved a notable milestone by reaching a $300 million annual run-rate, underscoring the scale of its operations across its lending products and payment solutions. The platform’s active user base grew to 970,000 users, reflecting steady uptake among UK consumers seeking flexible payment options.
Preparing for Public Markets Entry
The fintech company, which counts Goldman Sachs and eBay among its key backers, is actively preparing for a potential initial public offering as early as next year. The company has begun the process of engaging investment banks to guide a public market listing, according to statements from leadership.
Philip Belamant, the company’s chief executive, characterised the latest financial year as transformational. “FY26 was a foundational year for Zilch,” Belamant stated. “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.”
Balancing Growth and Sustainability
The divergence between revenue growth and rising losses reflects a familiar pattern among fintech companies at the growth stage, where customer acquisition investments often exceed near-term profitability. Zilch’s elevated credit costs suggest the company is managing a maturing loan portfolio while expanding credit exposure across its platform.
The company’s trajectory aligns with broader consolidation trends in the European buy-now-pay-later sector, where players have increasingly focused on profitability and sustainable unit economics following a period of rapid expansion. The BNPL market in Europe has matured considerably from its pandemic-era boom, with investors now prioritising companies demonstrating clear pathways to positive cash flow.
Zilch’s preparation for an IPO suggests confidence among its leadership and backers that the business model can deliver attractive returns at scale. A successful listing would represent a significant milestone for the UK fintech sector, particularly within the competitive BNPL space where several European competitors are similarly pursuing public market strategies.
The company’s progression reflects the evolution of consumer finance in the UK, where BNPL solutions have become increasingly mainstream alongside traditional payment methods.