London-based buy now pay later (BNPL) provider Zilch has been valued at $2bn (£1.65bn) after an investment from eBay.
The US ecommerce giant was revealed to have acquired a share of the Klarna rival in Zilch’s latest filings on Companies House, first reported by the Telegraph.
The investment from the equity arm of the online marketplace, eBay Ventures, is understood to be in the low single-digit millions.
Zilch declined to comment.
Founded in 2018, Zilch operates in the BNPL market, which allows customers to split the cost of purchases into instalments.
Zilch’s service divides purchases into four payments to be made over six weeks. Zilch does not charge interest, however, deferred payments come with late fees.
In August, Zilch chief executive Philip Belamant said the company was “seriously” considering its plans for an initial public offering (IPO) when opening trading at the London Stock Exchange.
Zilch, like its rival Klarna, has already implemented new rules in line with regulatory proposals – notably, the reporting of BNPL use to credit agencies, meaning failed payments can negatively impact credit scores.
The FCA on Tuesday announced it was cracking down on “unfair and unclear” BNPL contracts that do not clearly inform users of the risks of the service.