GIC leads $270m funding for Affirm

Singapore-based global investment firm GIC has led a US$200 million (S$270 million) Series E round of equity funding by financial services start-up Affirm Inc.

GIC said on Wednesday that this investment round was joined by existing investors including Khosla Ventures, Lightspeed Venture Partners, Founders Fund, Spark Capital, Caffeinated Capital, Ribbit Capital and new investor Emerson Collective. The new round of financing will be used to increase Affirm's credit distribution capacity, grow its pool of merchant partners and introduce new products and services.

Affirm has over 1,200 merchant partners including Wayfair, Expedia, Goodyear, Motorola, DJI, Casper, and Cole Haan. In October, it launched an app that is available in the iOS App Store and Android Google Play.

Affirm is a digital lending start-up founded by serial entrepreneur Max Levchin, who also co-founded electronic payment platform PayPal.

Mr Levchin's latest start-up lets shoppers pay for purchases across multiple months with transparent and simple interest loans that do not charge compounding interest or late fees, unlike traditional credit cards.

The digital lending platform also settles with merchants within a day, guarantees all payments and helps offset repayment and fraud risks for retailers.

Mr Levchin, who is also Affirm's chief executive, said: "Our goal is to be the app on your home screen for all of your financial needs."

"GIC is one of the world's most respected fund management companies and has been investing in technology for a very long time.

"We are excited to have GIC as a long-term partner that offers a unique network and insights on the evolving global fintech market."

A version of this article appeared in the print edition of The Straits Times on December 15, 2017, with the headline 'GIC leads $270m funding for Affirm'. Print Edition | Subscribe