Affirm Holdings, a service providing installment loans for online shoppers, is looking to raise nearly $1 billion with an initial public offering, Bloomberg reports.
Why It Matters: Affirm had initially planned to go public in December but was tripped up by SEC delays. Now, as the first significant IPO of 2021, Affirm’s fortune is a clear indicator last year’s record public listings run is poised to continue. It comes right on the tail of IPOs from Airbnb and DoorDash, which capped off $179 billion worth of public offerings in 2020.
The company was founded in 2012 by Max Levchin, who you might remember as one of the co-founders of PayPal. While Levchin is the company’s biggest shareholder, other key investors include Jasmine Ventures, Khosla Ventures, Founders Fund, Lightspeed Venture Partners and Shopify Inc.
Numbers To Consider:
- Affirm is seeking to raise as much as $934.9 million in its IPO.
- The company plans to sell 24.6 million shares at a price between $33 and $38.
- Over 6,500 merchants use Affirm’s platform, and shoppers use the service to cover purchases at an annual interest rate of 0% to 30%.
A Closer Look: Affirm posted a $15 million net loss on $174 million of revenue in Q3. During the same period in 2019, it lost $31 million on $88 million of revenue.
- Peloton accounted for 30% of Affirm’s total revenue in Q3.
What’s Next: Affirm plans to make its trading debut on Jan. 13 under the ticker “AFRM.”
Justin Oh:
Given that I’ve seen Affirm consumer loans proliferating across ecommerce the last few years, this will be an interesting one to cover.
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