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Affirm aims for $9 billion valuation on IPO

Affirm aims for $9 billion valuation on IPO

Affirm, Max Levchin's buy now, pay later credit card alternative, expects to achieve a valuation of just over $9 billion from its forthcoming IPO on Nasdaq.

In its latest filing with the SEC, Affirm said it plans to price its shares between $33 and $38 each and raise as much as $935 million from the sale.

Launched by PayPal co-founder Levchin in 2012, Affirm partners more than 6500 merchants helping them drive sales, grow average order value, and increase repurchase rates through its point of sale buy now, pay later option.

About 6.2 million people use the platform, with two thirds of loans this year taken out by repeat users. The company's biggest money-maker is exercise bike outfit Peloton, while last year it scored an exclusive arrangement with e-commerce marketplace Shopify and struck a deal to buy Canadian BNPL firm PayBright.

According to its filing with the SEC, Affirm made about $510 million in revenue for the fiscal year ended 30 June, a 93% rise on the previous year. Net losses halved, to $15.3 million, in the last quarter.

The decision to go public, first announced in November last year, came just two months after a $500 million Series G funding round that valued the company at $3 billion. An earlier date for the proposed IPO late last year was shelved until the New Year.

Affirm's public listing will act as a bellwether for the strenght of the fintech sector, with a host of other unicorns, such as eToro, Robinhood and Coinbase waiting in the wings.

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