Zilch posted its first profit and appointed former Aviva CEO to the board

British financial technology company Zilch on Tuesday reported its first monthly profit, marking an important milestone for the company as it looks towards an initial public offering.

In the trading update, Zilch, which competes with the likes of Klarna and Block in buy now, pay space later, said that it made an operating profit in July 2024, hitting profitability in four years from the founding date – faster than other major consumer fintechs that have managed to break even.

Competitors Starling and Monzo, meanwhile, took more than three and four years to turn a profit, respectively. Others have been able to profit more quickly. Digital banking startup Revolut, for example, went public for the first time just two years after launching.

Zilch also said it topped £100 million ($130 million) in annual revenue run rate, double the run rate reported last year.

Philip Belamant, CEO and co-founder of Zilch, told CNBC Tuesday that, despite the current high-interest rate environment, the company can profit by growing its business instead of shrinking like other fintechs.

“If you think about the last two-and-a-half, three years, a lot of VC-backed companies, especially high-growth fintech businesses, had to cut their way to profitability. They busted along the way,” Belamant told CNBC’s “Squawk Box Europe.”

“It’s not easy. And, for Zilch, we take a different approach. We look at this and say we can grow profitably,” added Belamant.

Separately on Tuesday, Zilch announced the appointment of former Aviva CEO Mark Wilson to the board. Wilson, who is a non-executive director, said he was “delighted” to join the company at a critical juncture and “further help Zilch steer its path to sustainable success as a category leader.”

CEO Zilch Belamant told CNBC in June that he wants to take the business public within the next 12 to 24 months. That same month, the company announced that it had raised $125 million in initial debt financing from Deutsche Bank.

The deal, which gives Zilch the option to draw up to $315 million in credit from Deutsche Bank and other banks, is expected to help the company increase its overall sales volume over the next few years, according to the company.

Klarna, which Zilch competes with in the UK, is also planning a stock market flotation in the medium term, with its CEO Sebastian Siemiatkowski previously told CNBC that it would not be “impossible” for the firm to list as soon as this year.