Klarna rival Zilch posts first profit and appoints ex-Aviva CEO to board ahead of IPO
Summary
British financial technology firm Zilch on Tuesday reported its first-ever month of profit, marking a key milestone for the company as it looks toward an eventual initial public offering. In a trading update, Zilch, which competes with the likes of Klarna and Block in the buy now, pay later space, said that it made an operating profit in July 2024, hitting profitability within four years of its founding date — faster than other major consumer fintechs that have also managed to break even. Competitors Starling and Monzo, meanwhile, took more than three and four years to make their first profit, respectively. Digital banking startup Revolut, for example, broke even for the first time just two years after its launch. Philip Belamant, Zilchs CEO and co-founder, told CNBC Tuesday that, despite the current high-interest rate environment, the firm was able to hit profitability by growing its business rather than cutting back like other fintechs have done.