The San Francisco-based payment company Affirm has raised $200 million in a financing round led by the Singaporean sovereign wealth fund GIC and other investors
Affirm, a platform that offers easy financing is reportedly receiving some funding of its own.
The San Francisco-based company said it is raising $200 million in a financing round led by the Singaporean sovereign wealth fund GIC. According to Tech Crunch, existing investors like Khosla Ventures and Spark Capital are also participating.
Affirm claims to offer its customers loans without any hidden fees or compounding interest. They have recently launched an app that allows users to split almost any online purchase into monthly installments.
“The growth of the company has been excellent.“, commented Max Levchin, a PayPal co-founder and CEO of Affirm. However, he added that “funding is not winning”. It means you are “committing yourself to a higher outcome.”
Meanwhile, Affirm`s valuation is reportedly estimated to be between $1.5 billion and $2 billion. Also, the company has received one million loans, amounting to $1 billion as of April this year.
The company is a business that looks to provide an alternative to credit cards. Levchin claims that Affirm is more ethical than its rivals because it only lends to people who can afford it. At the moment, their services are popular among young customer living in the US.
Levchin explained that some of the funding will be used for international expansion. Also, the company has plans to open an office in New York. As for IPO possibilities, he said that they are “not in a huge hurry to take the company to public”, but are generally supporting the idea.