THE HITLIST
THE UNICORN HERD · $1B – $9.9B
LONDON, UNITED KINGDOMFOUNDED 2018

Zilch

$2Bpaper valuation

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// OVERVIEW

Zilch built a £2 billion buy-now-pay-later business by convincing UK consumers that a virtual Mastercard that splits purchases into four installments was worth installing another app for — then watched Klarna, Block, and Apple build the same thing into products 200 million people already had installed.

// HQ

London, United Kingdom

// STATUS

PRIVATE

// FOUNDED

2018

// TIER

The Unicorn Herd · $1B – $9.9B

// PRIMARY SECTOR

fintech

// FOUNDERS

Philip Belamant

// FUNDING ROUNDS

SEED
2018
$2.5M
SERIES_A
2020
$30M
SERIES_C
2021
$160M@ $2B
VENTURE_ROUND
2023
$125M@ $2.5B

// SECTORS SERVED

// TECHNOLOGY

Virtual Mastercard linked to a BNPL payment schedule that splits purchases at any merchant into interest-free installments. The technical innovation is a pre-authorized card transaction that settles in installments rather than requiring merchant integration — which means Zilch works everywhere Mastercard works and merchants never know BNPL was involved.

// WOWLS ASSESSMENT

// THREAT LEVELHUNTED
strong today, obsolete tomorrow — the category is being replaced

Zilch processed £3 billion GMV in 2023 across 4 million UK customers, which sounds impressive until you realize Klarna processed £72 billion globally and Block's Afterpay processed £21 billion in the same period. The company raised £300 million in 2023 at a £2 billion valuation from Goldman Sachs and M&G — a meaningful down round from private whispers of £3+ billion in 2022 but still a 35x revenue multiple on estimated £57 million in merchant fees and interchange. The core problem is unit economics that require sustained consumer spending at elevated levels — the average UK Zilch customer splits £750 annually, generating roughly £14 in fees, while customer acquisition costs in a saturated BNPL market have risen above £20. Apple Pay Later launched in March 2024 with zero merchant fees and instant approval for existing Apple Card holders, which is the exact definition of a platform advantage that third-party apps cannot compete with.

// WHY WOWLS HUNTS THIS

The company raised £300 million to build merchant acceptance that Mastercard already had and customer trust that Apple demolished by making BNPL native. When platforms absorb your feature set your valuation becomes the cost of customer acquisition with no proprietary asset at the end.

// VALUATION NOTE

Peak valuation estimated from secondary market speculation. 2023 round at £2B confirmed by Goldman Sachs participation. Revenue estimated from GMV assuming 0.75% merchant fee plus interchange.

VERDICT: HUNTED — Apple Pay Later gave 57 million UK iPhone users BNPL without downloading Zilch's app, and that asymmetry cannot be competed away with better UX

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// LOADING INTEL…

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// SIMILAR TARGETS

// INTEL UPDATED: MAY 2026

// INTELLIGENCE DISCLAIMER: Assessments represent editorial opinion based on publicly available data including filings, press reports, and market data as of the date shown. Valuations are approximate. Not financial or investment advice.

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