Zilch, a UK-based BNPL fintech, reported a 93% rise in year-on-year revenue to £110.3 million (US$141 million) for the year ending March 31, 2025.

Losses dropped 79% year-on-year to £10.5 million (US$13.4 million)

The company said transaction and ad revenue rose 81% to £31.5 million (US$40.3 million).

Zilch offers ad-subsidised BNPL services, allowing customers to pay in interest-free instalments using debit or credit cards.

Gross merchandise value increased 73% to £1.9 billion (US$2.43 billion).

The company said it surpassed five million customers this year.

Zilch more than doubled its provision for credit losses to £27.4 million.

CEO Philip Belamant cited product development and customer acquisition as key growth drivers.

Zilch is considered a candidate for a future IPO, with leadership previously noting the possibility of listing outside the UK.

🔗 Source: Tech.eu

🧠 Food for thought

1️⃣ Rapid BNPL growth comes with hidden credit risk escalation

Zilch’s doubling of credit loss provisions to £27.4m alongside strong revenue growth reflects a broader industry pattern where explosive expansion masks rising default risks.

The BNPL sector has experienced unprecedented growth, with loans in the US surging from 16.8 million in 2019 to 180 million in 2021, while total loan values jumped from $2 billion to $24.2 billion over the same period 1.

This rapid scaling often involves approving riskier customers, as BNPL providers increased their approval rates from 56% in 2019 to 79% in 2022 to fuel growth 2.

Despite industry claims of low default rates, Zilch’s provision increase suggests that as BNPL companies mature and their customer bases age, the true cost of their aggressive growth strategies becomes apparent.