Affirm files for IPO
Affirm, a fintech company that lets online retailers provide pay-later options for customers, has filed to go public.
Why it matters: The company, founded by PayPal co-founder Max Levchin, is the latest Silicon Valley "unicorn" to file for an IPO as the year draws to a close. A number of tech companies are rushing to go public before the end of the year, including Airbnb and DoorDash, with Roblox and others also rumored to be in the pipeline.
By the numbers:
- For the fiscal years ended June 30, 2019 and 2020, Affirm's revenue was $264.4 million and $509.5 million, respectively. It had net losses of $120.5 million and $112.6 million for those same periods.
- For the three months ended Sept. 30, 2019 and 2020, it had revenue of $87.9 million and $174.0 million, respectively, with net losses of $30.8 million and $15.3 million.
- It says that as of Sept. 30, more than 6.2 million consumers have completed about 17.3 million transactions with over 6,500 merchants via its service, with a total gross merchandise volume (net of refunds) of about $10.7 billion transacted since July 1, 2016.
- The offering creates a dual-class stock structure, though there's a seven-year sunset at which Levchin's Class B common stock, which comes with 15 votes a share, will convert.
- In addition to Levchin, other large shareholders include Khosla Ventures, Founders Fund, Lightspeed Venture Partners, and Jasmine Ventures Pte.