Affirm Holdings Inc. home page screen On a laptop computer in an uncluttered photo taken in Little Falls, New Jersey, USA, on Wednesday, December 9, 2020.
Gabe Jones | Bloomberg | Getty Images
Payments firm Affirm rose more than 80% on its initial public offering on Nasdaq, kicking off a likely busy season in the market for the first time.
The stock began trading at $ 90.90 per share. Was confirming Pricing its shares At $ 49 apiece, higher than the target range of 41 to $ 44 each, and is seeking to raise $ 1.2 billion.
Founded in 2013 by PayPal Founding partner Max Levchin, Emphasized became prominent in “Buy Now Pay Later” space That offer point of sale loans. The company allows customers to finance online purchases that can be paid in monthly installments without accumulating compound interest.
It works with about 6,500 retailers, including Peloton, Wayfair, Walmart And consumer-oriented Warby Parker eyewear company. In an update to the IPO filing, Affirm said it is used by more than 6.2 million people. Affirm is also involved with Shopify In the past year, this has allowed merchants to make installment loans on the products they sell.
The company brought in nearly $ 510 million in revenue for the fiscal year ending June 30, up 93% from a year ago, according to its filings. In the three months ending September 30, revenue grew 98% year-over-year, while net losses nearly halved to $ 15.3 million.
A company that makes money when it helps a merchant make a sale. It also earns interest income on loans it buys from bank partners and some consumer loans. The rate they charge varies depending on the creditworthiness of consumers, but it often starts at 0%.
“Our goal is to be a viable alternative to credit cards,” Levchin told CNBC before the company’s debut.
Affirm’s market debut could represent another successful venture for Levchin, which has 27.5 million shares in the online lender. After PayPal sold EBay In 2002, Levchin started the social app company Slide. that Sold to me Google In 2010 for $ 182 million.
Affirm, which trades under the ticker “AFRM,” has made it onto the CNBC Disruptor 50 list twice.