GIC Backs Affirm Again
Posted on 09/18/2020
Founded by Max Levchin, Affirm is an alternative service to credit cards. Affirm announced a US$ 500 million series G round of funding. The funding round was led by Singapore’s GIC Private Limited, a returning investor, and Durable Capital Partners LP. Other returning investors include Lightspeed Venture Partners, Wellington Management Company, Baillie Gifford, Spark Capital, Founders Fund, and Fidelity Management & Research Company LLC. Affirm has raised over $1.3 billion from investors to date.
According to the press release, “When choosing to pay biweekly with Affirm, consumers can check eligibility in seconds, without impacting their credit score or inputting their social security number. For merchants, adding Affirm is simple and can take as little as one hour.”
By an installment loan approach, Affirm makes money by charging interest of between 10% and 30% and as a payment processor. Affirm loans varies depending on the consumer credit score and other factors – without charging any consumers late fees, service fees, and prepayment fees.
In April 2019, Affirm raised US$ 300 million in a Series F round that GIC participated in.
