Point-of-sale loan fintech Affirm raised $500 million in a Series G funding round led by Singaporean sovereign wealth fund GIC, a longtime backer, and Durable Capital Partners, the firm said Thursday.
GIC’s leading role means that the fund is doubling down on Affirm after already pouring $200 million into the firm’s 2017 Series E round. Affirm, which bills itself as a more flexible and transparent alternative to credit cards, has now raised a total of more than $1.3 billion.
The San Francisco-based fintech provides loans that allow consumers to pay off online purchases in fixed monthly payments, with interest rates ranging from 10% to 30%. The company, which was founded in 2012, currently partners with 6,000 merchants including Walmart, Audi and Expedia.
Also on Thursday, the fintech said it was introducing a new interest-free biweekly payment product for transactions as low as $50 to complement the firm’s preexisting monthly payment structures.
“Alongside this new capital, our latest product is another step towards becoming as ubiquitous as credit cards — Affirm is now an even more attractive payment option for everyday wants and needs,” said CEO and founder Max Levchin. “We can also now better support merchants who offer smaller ticket items and bring their customers a more transparent, flexible way to pay.”
Affirm also moved into the savings account space this June, unveiling a fee-free account with 1.30% annual percentage yield targeted at young Americans.
In July, The Wall Street Journal reported that the fintech was mulling an initial public offering with a valuation of up to $10 billion. The group is also reportedly considering selling itself to a blank-check company and has hired Goldman Sachs to advise on the matter.
It’s unclear whether the latest fundraising round indicates that Affirm is postponing alleged plans to go public.
Other returning investors in Affirm’s latest round included Lightspeed Venture Partners, Wellington Management, Baillie Gifford, Spark Capital, Founders Fund, and Fidelity Management & Research.
Point-of-sale loan competitor Afterpay, which counts Urban Outfitters and Levi’s among its partners, revealed plans in July to raise AU 800 million ($557 million) by issuing new shares. The firm also pushed into the Canadian and Southern European markets this summer.
Affirm says it currently has 5.6 million customers in the U.S. and Canada. The company’s loans are financed by its own loan servicing company as well as by Cross River Bank and Celtic Bank.