San Francisco based consumer lending company Affirm has raised a $200m funding round led by GIC at a valuation between $1.5b-$2b, from $800m last year.
Co-founded in 2012 by former PayPal Holdings Inc. technology chief Max Levchin, Affirm extends credit to consumers to pay for goods and services at more than 1,200 merchants, including Expedia Inc., Wayfair Inc. and Cole Haan. Since inception, the San Francisco-based company has made more than $1 billion in loans, typically with three-, six- or twelve-month payback periods and a median annual percentage rate of 19%. Meanwhile, online lenders that focus on other types of consumer credit have fallen out of favor with investors. Shares in LendingClub Corp. hit an all-time low last week after the company reduced its fourth-quarter earnings forecast and predicted another year of losses for 2018. Earnest Inc., which primarily refinanced student loans, agreed to sell itself in October for less than it was valued at in 2015.