Zilch Secures £395 Million Debt Facility Expansion Led by Deutsche Bank

Zilch has increased its securitisation and corporate debt facilities by £165 million, bringing its total available commitment to £395 million. Led by Deutsche Bank, this capital injection allows the London-based fintech to scale its lending capacity to £6 billion annually, specifically supporting the growth of its longer-dated credit products and broader consumer payment ecosystem.

What was announced

The expansion of Zilch’s debt facilities is designed to meet rising consumer demand for its evolving product suite, particularly the "Pay Monthly" feature launched in August 2026. This product allows qualifying users to spread the cost of larger expenditures—such as household appliances, insurance premiums, and travel—over periods of 3, 6, or 12 months. By providing these longer-dated options, Zilch is positioning itself as a direct alternative to traditional high-interest personal loans and credit cards.

The funding round was led by Deutsche Bank and included participation from two of the world’s largest credit funds. This additional £165 million in aggregate capacity arrives as Zilch reports significant growth in user engagement. The company’s average annual spend per active customer has reached £2,500, while its Gross Merchandise Value (GMV) run rate has surpassed £3.5 billion. These figures suggest the platform is increasingly being used for everyday transactions rather than just occasional discretionary purchases.

The announcement follows a period of financial milestones for the company. Zilch recently confirmed it has surpassed a $300 million annual run rate and achieved two consecutive quarters of adjusted profit before tax in the 2027 fiscal year. To accommodate this scaling, the company also confirmed plans to relocate to a new London headquarters in Spring 2027, which will more than double its current office capacity.

"As we continue to grow at significant scale, having access to efficient funding is a key parameter for success. These expanded facilities give us greater capacity to support our customers where they need us, capturing more of the transactions that matter to customers day to day and providing the most rewarding ways to pay. By serving a broader range of customer needs, we can continue building a highly engaged customer relationship and delivering the value, flexibility and features that our customers really want."

Philip Belamant, Co-Founder & CEO at Zilch

The companies involved

Zilch is a London-based consumer payments app that has rapidly carved out a significant position in the UK fintech market. Since its inception, the company has focused on providing a regulated alternative to traditional credit, combining elements of Buy Now, Pay Later (BNPL) with a broader payments interface. It has distinguished itself through a direct-to-consumer model that does not rely solely on merchant integrations, allowing users to pay over time at any retailer that accepts major card payments. The company has maintained a high profile in the sector, with its recent move toward sustained profitability marking a transition from a high-growth startup to a mature financial services provider.

Deutsche Bank, which led this latest funding round, is one of the world's leading financial institutions and a major player in wholesale finance and securitisation. Its involvement underscores a growing trend of Tier 1 banks providing the capital backbone for successful fintech disruptors. Deutsche Bank has been increasingly active in the digital finance space, recently exploring the intersection of wholesale finance and emerging technologies to streamline global payment systems.

What FF News has reported before

FF News has closely tracked Zilch’s trajectory as it transitioned from a growth-focused challenger to a profitable market leader. In early November 2026, we reported that Zilch Hits $300m Annual Run Rate and Achieves Adjusted Profitability Following Strong FY26 Results, a milestone that set the stage for this debt expansion. This followed our coverage of the company’s physical expansion, where Zilch Commits £77m to New London HQ as Customer Spend Surpasses £8 Billion. Additionally, the company has been active in enhancing its loyalty ecosystem, as seen when Zilch Partners with Spotify to Offer Four Months of Premium Free for Plus Members. Meanwhile, our coverage of the lead funder includes reports on how Deutsche Bank and Ant Digital Technologies Unveil Future of Agentic Payments in Wholesale Finance, highlighting the bank's broader interest in payment innovation.

What this means

This expansion of debt facilities signals a fundamental shift in the alternative credit market. By securing the capacity to lend £6 billion annually, Zilch is no longer just a "pay-in-four" provider; it is moving into the territory of mid-term consumer credit traditionally dominated by retail banks. This puts immense pressure on legacy credit card issuers, whose high-interest models are increasingly vulnerable to transparent, fixed-term alternatives. The backing of Deutsche Bank and major credit funds also suggests that institutional appetite for fintech-originated debt remains strong, provided the platforms can demonstrate the underwriting discipline required to achieve adjusted profitability. The industry’s next challenge will be maintaining this credit quality as they move into larger, longer-term ticket items like insurance and appliances.