Many companies have either launched or are at least considering the possibility of conducting an initial public offering (IPO), despite the economic uncertainty created by the global COVID-19 outbreak.
San Francisco-based Fintech firm Affirm, which was established by Max Levchin, the co-founder of PayPal, has enlisted major investment bank Goldman Sachs for a potential IPO that might value Affirm at around $10 billion, The Wall Street Journal reports. Affirm could begin trading by the end of 2020.
The Fintech firm is reportedly looking into whether it should go public through a special purpose acquisition company (SPAC), which is a shell company that has no business operations but intends to go public so that it can acquire or merge with a firm with the proceeds of the SPAC’s IPO.
Affirm offers consumer payment alternatives to cash and traditional credit. The company helps with providing short-term loans to finance costly purchases.
Affirm has teamed up with Walmart and various digital commerce platforms such as Shopify and Stubhub. There are around 900 professionals that work for Affirm (across the US). The Fintech company has 678 employees at its Bay Area location.
Established in 2012, Affirm has secured over $1 billion from various investors including giant VC firm Andreessen Horowitz, Founders Fund, and Khosla Ventures. The Fintech company acquired $300 million through its latest Series F round at an approximate $3 billion valuation.
Just days after announcing its partnership with Shopify, Affirm announced that it had formed a partnership with Design Within Reach to allow shoppers to pay-over-time for modern furniture and decor. In June 2020, Affirm introduced high-yield savings accounts.
In December 2017, Affirm achieved Unicorn status (a valuation of at least $1 billion).