Zilch, the London-headquartered payments and credit platform, has closed a £200 million Series D funding round led by Goldman Sachs Asset Management and DMG Ventures, valuing the business at approximately £2.5 billion. The raise represents one of the largest fintech funding rounds in Europe this year and will be used to expand Zilch's product suite beyond its core buy now, pay later offering into credit building tools, personal loans and cashback rewards.

Founder and chief executive Philip Sherrell said the investment reflected growing investor confidence in Zilch's "pay anywhere" model, which allows customers to spread costs across virtually any online or in-store purchase rather than being limited to specific retailer partnerships. The platform now serves over 4 million UK customers and processes more than £1.5 billion in annualised transaction volume. "We are building the consumer finance super app that the UK has been waiting for," Sherrell said.

The expansion into regulated credit products signals a strategic shift that could put Zilch in direct competition with established lenders and neobanks such as Monzo and Revolut. Analysts at Jefferies noted that the move carried execution risk, particularly as the FCA tightens its oversight of the broader consumer credit market. Nevertheless, the strong investor appetite suggests confidence that Zilch's technology platform and data capabilities can support a wider lending proposition.