Total amount raised
$6.8 Billions
Latest funding date
Location
Affirm has successfully raised significant funding through multiple rounds, attracting a diverse group of investors. The company offers a buy-now-pay-later service that allows consumers to make purchases and pay over time with flexible payment plans.
Keep reading to explore the intricacies of Affirm's fundraising journey and the investors backing this innovative platform.
What Is Affirm?
Affirm, founded in 2012, is a financial technology company based in San Francisco, California. The company was established by Max Levchin, Alex Rampell, Jeffrey Kaditz, and Nathan Gettings.
Affirm offers buy-now-pay-later services, allowing consumers to make purchases and pay over time with no hidden fees. The company has grown significantly, employing between 1001 and 5000 people.
For more details, you can visit their official website or check out their Crunchbase profile.
How Much Funding Has Affirm Raised?
- Series D
- Amount Raised: $100M
- Date: April 2016
- Lead Investors: Founders Fund
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand its product offerings and scale its operations.
- Debt Financing
- Amount Raised: $100M
- Date: October 2016
- Lead Investors: Morgan Stanley
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's lending capacity.
- Series E
- Amount Raised: $200M
- Date: December 2017
- Lead Investors: GIC
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To fuel growth and expand into new markets.
- Secondary Market
- Amount Raised: Not publicly disclosed
- Date: April 2018
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to early investors and employees.
- Series F
- Amount Raised: $300M
- Date: April 2019
- Lead Investors: Thrive Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate product development and market expansion.
- Series G
- Amount Raised: $500M
- Date: September 2020
- Lead Investors: Durable Capital Partners, GIC
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance its technology platform and expand its merchant network.
- Post-IPO Equity
- Amount Raised: Not publicly disclosed
- Date: January 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing growth and operational needs.
- Post-IPO Debt
- Amount Raised: $500M
- Date: December 2024
- Lead Investors: PGIM Fixed Income
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To increase lending capacity and support business expansion.
- Post-IPO Debt
- Amount Raised: $4B
- Date: December 2024
- Lead Investors: Sixth Street
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To extend up to more than $20 billion in loans over the next three years.
- Post-IPO Debt
- Amount Raised: $800M
- Date: December 2024
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further enhance its financial stability and growth potential.
Total Amount Raised: $6.4B. Current Valuation: Not publicly disclosed.
Key Investors
- Sixth Street
- Details: Sixth Street is a global investment firm headquartered in San Francisco, managing over $80 billion in assets. They offer a range of investment strategies across various asset classes.
- Investment Focus Areas: Private equity, credit, real estate, infrastructure.
- Notable Investments: Airbnb, Spotify, Carvana.
- PGIM Fixed Income
- Details: PGIM Fixed Income is a global asset manager specializing in fixed income investments. They manage a diverse portfolio that includes corporate bonds, government bonds, and structured products.
- Investment Focus Areas: Financial services, technology, healthcare.
- Notable Investments: Not publicly disclosed.
- GIC
- Details: GIC is a sovereign wealth fund established by the Government of Singapore. It manages Singapore's foreign reserves and invests globally across a range of asset classes.
- Investment Focus Areas: Real estate, private equity, infrastructure, fixed income, equities.
- Notable Investments: Alibaba, Blackstone, UBS.
- Thrive Capital
- Details: Thrive Capital is a venture capital firm based in New York City. They focus on technology investments and have a strong track record in backing innovative companies.
- Investment Focus Areas: Technology, healthcare, financial services.
- Notable Investments: Instagram, Stripe, Slack.
- Founders Fund
- Details: Founders Fund is a San Francisco-based venture capital firm. They invest in companies across various stages and sectors, with a focus on transformative technologies.
- Investment Focus Areas: Technology, aerospace, healthcare, energy.
- Notable Investments: SpaceX, Palantir, Facebook.
What's Next for Affirm?
Affirm's recent $4 billion capital partnership with Sixth Street opens up vast opportunities for the company. This significant investment will enable Affirm to extend up to more than $20 billion in loans over the next three years, scaling its payment network and expanding its user base. The company has already made strides by entering the UK market, offering new payment plans regulated by the Financial Conduct Authority.
Future fundraising efforts are likely as Affirm continues to build relationships with long-term capital partners. However, the company may face challenges such as regulatory hurdles in new markets and competition from other BNPL providers. Managing the large volume of loans and ensuring repayment will also be critical as Affirm navigates its growth trajectory.
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