London-based buy now, pay later (BNPL) provider Zilch announced Thursday (June 30) that it has secured an additional $50 million investment for its Series C funding round, Tech Funding News reported. The total investment for the round now stands at $160 million.
The company plans to use the capital to accelerate business growth in the U.S. market, according to the report.
Founded in 2018 by Philip Belamant, Zilch is a BNPL app that allows people to split the costs of their purchases anywhere Mastercard is accepted.
Zilch’s list of investors includes Ventura Capital, Goldman Sachs Asset Management, Gauss Ventures, DMG Ventures, M&F Fund and Limited Ventures.
Discussing the news, Belamant said, “this extension is a great endorsement of our unique model as well as our investors’ belief in our ability to deliver on our mission to create the world’s most empowering way for people to pay for anything, anywhere.”
Sean O’Connor, the company’s other co-founder, added, per Business Wire: “Since we founded Zilch and began raising capital, the markets have been difficult to predict given COVID and now the downturn the markets are currently seeing. We believe our focus on alignment with the consumer, delivered by our innovative business model, has the potential to create significant long-term value for shareholders.
“Our extensive investment in communicating this message and developing our international network of renowned private, family office, and institutional investors has enabled us to secure this extension at the same terms as our Series C, which is a testament to their belief in our significant market opportunity, and our ability to execute against it.”
The latest announcement from Zilch comes as authorities in the United Kingdom are moving to regulate the BNPL sector, which, up until now, has been relatively unregulated compared to other modes of credit lending.
The expected new rules will require BNPL providers to carry out checks on consumers to ensure that they can afford to take out loans. Lenders will also need to be approved by the Financial Conduct Authority (FCA).
Read more: UK BNPL Regulation Unlikely Before Mid-2023
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