Rival company Zilch raises $125 million in an effort to treble sales and quicken its IPO process
The German financial behemoth Deutsche Bank has provided $125 million in debt financing to the British fintech business Zilch, which will enable it to increase revenues over the next few years and get closer to an IPO.
The company said the debt was structured as a securitization, which allows several loans to be packaged together. Customers can purchase products and pay off the debt in interest-free monthly installments.
At first, Zilch obtained credit from Goldman Sachs' private credit division for its payment plans and other loans. According to the company, the agreement with Deutsche Bank offered more flexible conditions and would allow it to access up to $315 in total financing, including borrowing from various institutions.
The CEO and co-founder of Zilch, Philip Belamant, stated that while the conditions of the company's agreement with Goldman Sachs were advantageous for a young, rapidly expanding startup, they were ultimately overly restrictive. As the company has grown, Zilch's financing needs have increased, he said, necessitating a more flexible lending arrangement.
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