Fintech Zilch is lining up investment banks for an initial public offering as soon as next year, delivering a potential boost to the London Stock Exchange. Zilch, which provides cheap consumer loans, this month invited banks to pitch for roles on its planned flotation. The beauty contest is a concrete step in Zilch’s progress towards an IPO, with the fintech frequently touted as a possible listing candidate.

Zilch was valued at $2bn in a fundraising round in 2021, when the fintech market was more buoyant. But the company has maintained that valuation in subsequent funding rounds. In its last financial year to March 2025, Zilch lost £10.5mn, down from £50mn losses the previous year.

Zilch was aiming to be profitable by the time it lists next year. The company has been backed by the likes of eBay, Goldman Sachs and DMG Ventures, the investment arm of the Daily Mail. Last November the company raised more than $175mn in debt and equity led by Czech billionaire Karel Komárek’s investment firm KKCG to pursue deals.

The group in January struck a deal to buy the Lithuanian lender Fjord Bank, part of a push by the UK company to expand internationally. The deal handed Zilch a European banking licence allowing it to lend across the continent. Founded in 2018, Zilch has nearly 6mn customers and offers a cashback debit card, buy-now-pay-later products and zero-interest loans.

It generates revenues from targeted advertising based on its transaction data. A Zilch listing could be a fillip for the London Stock Exchange, which has battled a multiyear listings drought and a series of takeovers of UK-listed companies. Zilch said: “After a transformative 12 months for the business, we are fully focused on executing our strategy which is delivering impressive growth, with all strategic options remaining open.”.