By Elena Vasquez

Zilch is preparing for an IPO that could begin in the second half of 2027, with Chief Executive Philip Belamant confident of holding its $2 billion (£1.5 billion) valuation.

The timing remains unsettled. Zilch called in bankers in recent months to discuss a public-market debut, but no banks have been appointed. Belamant said current and potential investors support the business and can see where it is heading.

Asked whether the valuation would hold on public markets, Belamant replied: "the short answer is we believe so".

Zilch, founded in 2018, received that valuation in 2022 and has maintained the price tag through subsequent funding rounds. Goldman Sachs, Deutsche Bank and the venture capital arms of the Daily Mail and Ebay count among its investors. Belamant said the company feels good about its current trajectory.

He tied the listing to operating delivery: "We have a strong relationship with reality, and ultimately we know we need to hit our numbers, we need to keep growing and we obviously will let the market speak."

Can Zilch defend its $2bn valuation?

The most recent financial year delivered strong growth alongside heavier losses and credit costs:

• Revenue rose 36% to £147.5 million.
• Gross merchandise value, the monetary value of goods sold through Zilch services, increased 28% to £2.4 billion during the year.
• Statutory pre-tax losses nearly tripled to £36 million from £12.5 million.
• Credit impairments jumped 66% to £45.5 million as the fintech reserved more cash for sour loans.

Belamant called the year a major infrastructure build-out. Upfront spending included IT overhauls and the takeover of Lithuanian Fjord Bank, while non-cash equity-incentive charges also weighed on the statutory result.

He characterized losses as stable and attributed them to a much larger business originating more volume. Even so, the adjusted loss before tax widened to £5.3 million from £1.2 million.

For prospective shareholders, the tension is clear. Zilch expanded revenue and transaction volumes while reserving substantially more against loans and recording a near-tripling of statutory losses.

What does the credit-cost increase signal?

The £45.5 million credit-impairment charge exceeded Zilch's £36 million statutory pre-tax loss. Belamant linked the increase to rapid customer growth and a push into longer-dated borrowing products.

That combination can increase near-term costs as a lender expands: more customers and longer-term loans require larger reserves before their full earnings contribution becomes clear. Zilch therefore enters its listing preparations with both faster growth and heavier credit provisioning.

Has the earnings position improved?

Zilch's financial year began in April 2026. Belamant said the fintech was well ahead of budget and had secured two quarters of adjusted profit before tax.

The early adjusted profit contrasts with the £5.3 million adjusted pre-tax loss in the preceding year. It also provides Zilch with evidence that its infrastructure investment and expansion can generate positive operating results before a public-market valuation tests the business.

Where could Zilch list?

London remains the early favourite, with the listing likely in late 2027 or early 2028, according to City AM's earlier reporting. New York and continental Europe remain alternatives.

Long viewed as a leading London candidate, Zilch has drawn interest from Treasury and stock exchange officials. A listing would give the London Stock Exchange a high-growth technology company after repeated difficulties attracting such issuers.

Rival Klarna chose New York for its listing last year. Airtel Africa's fintech arm instead floated at £5.3 billion on the City market in October, becoming the biggest primary-listed IPO since 2021.

Zilch must now turn faster lending, higher impairments and early adjusted profits into durable earnings before public investors test its $2 billion valuation.