Zilch, a rival to Klarna, reports its first profit and appoints a former Aviva CEO to its board as it prepares for an IPO.

• In July 2024, Zilch announced that it had achieved operating profitability, surpassing other major consumer fintechs in reaching profitability faster.
• The company reported that its annual revenue run rate had doubled from the previous year, reaching £100 million ($130 million).
• Zilch's CEO, Philip Belamant, informed CNBC that the company achieved profitability through expansion instead of reducing costs like other fintechs.

Zilch, a British financial technology company, announced its first profitable month on Tuesday, signaling a significant milestone as it prepares for an initial public offering.

Zilch, a buy now, pay later competitor to Klarna, announced that it achieved operating profit in July 2024, reaching profitability four years after its founding date, faster than other major consumer fintechs that have also achieved this milestone.

Revolut, a digital banking startup, achieved profitability in just two years after its launch, while Starling and Monzo took more than three and four years, respectively.

Last year, Zilch reported an annual revenue run rate of £50 million ($65 million), but this year it has doubled to £100 million ($130 million).

Zilch's CEO and co-founder, Philip Belamant, stated on CNBC Tuesday that the company achieved profitability by expanding its business instead of reducing expenses like other fintechs have done, even in the current high-interest rate environment.

"High growth fintech businesses have had to cut their way to profitability over the past two and a half to three years, with some going bankrupt in the process, according to Belamant."

Belamant stated that growing to profitability was the approach they took for Zilch, as it was not an easy task.

On Tuesday, Zilch appointed former Aviva CEO Mark Wilson to its board as a non-executive director. Wilson expressed his excitement about joining the company at a crucial moment and contributing to its journey towards becoming a leading category success.

In June, Zilch's CEO Belamant informed CNBC that he plans to list the company publicly within the next 12 to 24 months. The company had previously raised $125 million of initial debt financing from Deutsche Bank in the same month.

The deal that allows Zilch to borrow up to $315 million from Deutsche Bank and other banks is expected to help the company increase its sales volumes by three times in the next few years, according to the company.

In the U.K., Klarna, a competitor of Zilch, is considering a stock market flotation in the near future, with CEO Sebastian Siemiatkowski stating that it is not impossible for the company to list as soon as this year.