Confirm the home screen of the laptop website in a tidy photo taken in Little Falls, New Jersey, USA, on Wednesday, December 9, 2020.
Gabby Jones Bloomberg | Getty images
Shares of paying companies Affirm jumped more than 80% in its initial public offering on the Nasdaq, launching what will likely be a busy season for market debuts.
The stock began trading at $ 90.90 per share. The affiliate valued its shares at $ 49 in cash, above the target range of $ 41
Founded in 2013 by PayPal co-founder Max Levchin, Affirm has become a prominent place in the “buy now pay later” space, offering on-site loans. The company allows customers to finance online purchases that can be paid in monthly installments without accruing compound interest.
It works with about 6,500 retailers, including Peloton, Wayfair, Walmart and direct-user eyewear company Warby Parker. In an update to its IPO application, Affirm said it was used by more than 6.2 million people. Confirm your partnership with Shopify last year by allowing merchants to offer installment loans for the products they sell.
The confirmation brought in approximately $ 510 million in revenue for the fiscal year ended June 30, a 93% jump from last year, according to documents. In the three months ending Sept. 30, revenue rose 98 percent year-over-year, while net losses halved to about $ 15.3 million.
Confirm making money when helping a merchant make a sale. He also earns interest income on loans he buys from banking partners and some consumer loans. The rate they charge varies depending on the creditworthiness of consumers, but often starts at 0%.
“Our goal is to be a viable alternative to credit cards,” Levchin told CNBC before the company’s first deal.
Morgan Stanley, Goldman Sachs and Allen & Co were the leading insurers for the offer. Among the main investors are the Peter Thiel Founders’ Fund, Khosla Ventures and the Lightspeed Venture Fund.
Affirm’s market debut could mark another successful venture for Levchin, which owns 27.5 million shares in the online lender. Following the sale of PayPal to eBay in 2002, Levchin launched social services company Slide. It was sold to Google in 2010 for $ 182 million.
Affirm, which trades under the “AFRM” symbol, lists CNBC Disruptor 50 twice.
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