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Fintech Affirm mulls IPO, eyes valuation up to $10B: WSJ

July 31, 2020. Print article

, a fintech that lends to consumers, is considering an initial public offering and is looking at a target valuation range up to $10 billion, The Wall Street Journal reported.

The company, which allows consumers to buy items from partner retailers through its app, is also exploring the possibility of a sale to a special-purpose acquisition company, the financial publication said Thursday. A SPAC is an investment vehicle set up to acquire another company with the intent of taking the target entity public. 

Affirm has hired to provide advice on the matter, WSJ reported, citing anonymous sources. Trading could potentially begin later this year, depending on the pace at which Affirm acts and on market conditions, the publication said.

A spokesperson for Affirm declined to comment.

Affirm has partner retailers such as Peloton, Walmart, Warby Parker and Oscar de la Renta. The fintech, which presents itself as an alternative to credit cards, offers interest-free installment payments for purchases made from partners by users of its app. The company does not charge penalties or late fees.

In June, the company got a $250 million revolving credit facility from private equity firm . The same month, the fintech rolled out a high-yield savings account geared toward millennials and Generation Z, with an APY of 1.30%, no fees and no minimum balance needed.

Earlier in July, Affirm said that it was partnering with Shopify to power its installment-payments platform. 

The company previously said that it raised equity financing of more than $800 million. Its last equity raising was a Series F round in April 2019 for $300 million. 

Affirm was founded in 2012 by Max Levchin, a co-founder of . It has several investors, including , Singaporean sovereign-wealth fund , Joshua Kushner’s Thrive Capital, Peter Thield’s Founders Fund, actor Ashton Kutcher, Spark Capital and Lightspeed Ventures.