UK buy now, pay later start-up quadruples valuation to $2 billion, plans U.S. expansion

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UK buy now, pay later start-up quadruples valuation to $2 billion, plans U.S. expansion
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British start-up Zilch is riding the 'buy now, pay later' wave to America.

, which owns the Daily Mail newspaper. It has raised a total of $340 million in both equity and debt financing to date.

That war chest of funds will be key to helping Zilch gain a foothold in the U.S. market, which is dominated by the likes of Affirm, Afterpay and Klarna. "We do need to thank these other guys for spending millions on educating customers," Belamant said. "Klarna tried six years ago to go to the U.S. and it didn't work so well. And I think the timing was probably wrong."

"A lot of investors or shareholders have asked us if we're doing a product-market fit test for the U.S. And actually, the answer is Afterpay has been doing it for us."earlier this year agreed to buy Afterpay for $29 billion, while PayPal is buying Japanese firm Paidy for $2.7 billion. Zilch isn't the only start-up benefiting from the surge in demand for BNPL. Elsewhere in Europe, German fintech firm Billie raised $100 million at a $640 million valuation while Italian company Scalapay bagged $155 million in a round valuing it at $700 million.

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