BNPL Firm Zilch Buys Commercial Lender NepFin, Readies US Growth

Zilch, a London-based FinTech buy now, pay later (BNPL) startup, on Wednesday (Aug. 11) announced the purchase of commercial lender NepFin.

Zilch has not disclosed the cost of acquiring NepFin. However, the acquisition follows the company’s recent Series B funding round, which generated $110 million, driving its total funding to $200 million. The company said the funds would be integral to its expansion in the U.S., as well as to help obtain key licensing and regulatory capabilities.

As PYMNTS reported previously, the lending company had raised $80 million in funding in April, a move that pushed its valuation to more than $500 million. Zilch also partnered with Mastercard in an attempt to set itself apart in the increasingly crowded field of BNPL contenders. The company developed a payment card that allows purchasers to use a Mastercard number at checkout, providing the option to pay in installments or pay the same way they would with a typical credit card.

Zilch allows its customers to spread their payments out over six weeks for zero interest and zero fees.

Read more: BNPL Startup Zilch Valued At $500M Ahead Of US Launch

Buoyed by the new acquisition, Zilch is aiming to scale its U.S. team by year’s end, with additions in its sales, marketing, compliance, customer service and engineering departments, the company said.

Zilch and NepFin have a shared ideology centered on developing other means for customers to buy goods and services without racking up debt or negatively impacting credit. Driving that mission will be the dual company’s new team, which includes Albert Periu, who joins as CEO of the U.S., and Thomas Meister, who joins as COO and general counsel in the U.S. Based on their experience with NepFin and, prior to that, Funding Circle, Periu and Meister bring to the company industry insight in scaling U.S. FinTech lending businesses.

The NepFin acquisition marks Zilch’s first stride in international growth, according to the company.