Affirm Aims At Over $10B Valuation In IPO Filing

Buy now, pay later (BNPL) platform Affirm boosted the price range of its initial public offering (IPO), potentially raising $1.08 billion, according to a Monday (Jan. 11) filing with the Securities and Exchange Commission (SEC).

The Silicon Valley startup is planning to offer 24.6 million shares of its common stock through the IPO, with a price range of $41 to $44 per share. Affirm intends to list on the Nasdaq under the ticker AFRM. The original price per share range was targeted at $33 to $38.

At $44 per share price, Affirm would have a valuation in excess of $10 billion, Reuters reported. The offer is being led by Morgan Stanley, Goldman Sachs and Allen & Co.

Affirm, founded by PayPal’s co-founder, Max Levchin, in 2012, offers shoppers monthly installment payments regardless of credit history. The company was valued just under $3 billion in its last private funding round, according to PitchBook, per Reuters.

The startup had originally said it would go public before the end of 2020 but postponed plans. Affirm said in November that revenue for the fiscal year that ended Sept. 30 was up substantially year over year.

The latest PYMNTS Buy Now, Pay Later Tracker indicated that the BNPL market has benefited from a pandemic-fueled interest in BNPL, especially among younger shoppers and older millennials.

In December, Affirm announced it was partnering with digital home services marketplace HomeAdvisor, a division of ANGI Homeservices. Over the past year, the ANGI Homeservices umbrella handled more than 28 million household projects.

Affirm partnered with the travel industry eCommerce platform Inntopia in November to extend BNPL options to the hotel industry. The installment plan can be activated during Inntopia’s checkout process for room reservations or other purchases over $50.



About: The PYMNTS Subscription Bundling Report, surveyed a census-balanced panel of 2,962 U.S. consumers to gauge how their attitudes toward bundled subscription services have changed during the pandemic, especially those offered by companies in the streaming sector. The report also examines how the knowledge that a COVID-19 vaccine will soon be available throughout the U.S. could affect their perceptions.

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