Installment loan provider Affirm joins year-end IPO rush

Affirm Holdings Inc., which provides installment loans to online buyers, has applied for an initial public offering, reporting declining income gains and losses.

The San Francisco-based company in its filing on Wednesday said the size of the offering was $ 100 million, a placeholder that will likely change.

Affirm joins a class of consumer tech companies looking to tap the public market before the end of the year. Airbnb Inc. and DoorDash Inc. filed IPOs this month, with deposits still possible by other companies.

More than 6,500 traders use Affirm’s platform, according to its prospectus filed with the US Securities and Exchange Commission. After selecting their purchases, buyers can choose a schedule to pay for them at an annual interest rate of 0% to 30%, according to the Affirm website.

For the third quarter, Affirm recorded a net loss of $ 15 million on revenue of $ 174 million, compared with a loss of $ 31 million on revenue of $ 88 million during the same period in 2019, according to its filing.

Affirm was founded in 2012 by Max Levchin, who also co-founded PayPal Holdings Inc. Levchin is the company’s largest shareholder, according to the filing. Other big owners include Khosla Ventures, Founders Fund, Lightspeed Venture Partners, Jasmine Ventures, and Shopify Inc. The company said its Class B shares would each carry 15 votes, while the Class A shares sold on the IPO in exchange would have one vote each.

The offering is being led by Morgan Stanley, Goldman Sachs Group Inc. and Allen & Co. Affirm plans to list its shares on the Nasdaq Global Select Market under the symbol AFRM.

This story was posted from an agency feed with no text editing.

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