Fintech company Zilch is selecting investment banks and plans to launch an initial public offering as early as next year, a move that could inject vitality into the London Stock Exchange. In recent years, a number of UK-listed companies have been acquired, putting pressure on the LSE market. People familiar with the matter said the company, which provides low-cost consumer loans, invited several investment banks this month to bid for underwriting roles in the listing project. The people cautioned that talks remain at an early stage and the listing plans could still change. The bank bidding process is a substantive step in Zilch's push toward an IPO, and the fintech company has long been seen as a potential listing candidate. During the hot fintech market of 2021, Zilch reached a valuation of US$2 billion in a funding round. People close to the company said it has maintained that valuation level in subsequent funding rounds. Two people familiar with the listing discussions said that even if the listing succeeds, the company will find it difficult to reach that previous peak valuation. In the last financial year ended March 2025, Zilch lost 10.5 million pounds, a sharp narrowing from a loss of 50 million pounds a year earlier. People familiar with the matter added that Zilch aims to achieve profitability before listing next year. eBay, Goldman Sachs and DMG Ventures, the investment arm of the Daily Mail, are all investors in Zilch. Last November, the company completed more than US$175 million in debt and equity financing, led by KKCG, owned by Czech billionaire Karel Komarek, for M&A expansion. In January this year, Zilch reached a deal to acquire Lithuanian bank Fjord Bank as part of its international expansion. The acquisition gave Zilch a European banking license, allowing it to conduct lending business across the European continent. Founded in 2018, Zilch has nearly 6 million users and offers a cashback debit card, buy now, pay later products and interest-free loans. The company generates revenue by using transaction data to run targeted advertising. If Zilch successfully lists, it would be a positive for the LSE. For years, the London Stock Exchange has faced a shortage of IPO projects, compounded by the problem of many locally listed companies being acquired. The market has long hoped that UK fintech companies could contribute a batch of IPO candidates. LSE Group has been actively courting Zilch, digital challenger banks Monzo and Starling, and lender Oak North to list. News this week showed that Monzo is in talks with Brazilian digital bank Nubank about a potential acquisition, while also negotiating a large equity sale with private equity institutions. Zilch responded: "After 12 months of business transformation, we are fully advancing the implementation of our strategy, business growth has been strong, and all strategic options remain open."