Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ AFRM begins trading on Nasdaq

AFRM begins trading on Nasdaq

Affirm Holdings Inc. website home screen on a laptop in an arranged photograph taken in Little Falls, New Jersey, USA, Wednesday, December 9, 2020.

Gabby Jones | Bloomberg | Getty Images

The payment company Affirm rose more than 80% in the initial listing on Nasdaq and started what is likely to be a busy market debut season.

The stock started trading at $ 90.90 per share. Shares. Affirm had priced its shares at $ 49 each over its target range of $ 41

to $ 44 each and is trying to raise $ 1.2 billion.

Founded in 2013 by PayPal co-founder Max Levchin, Affirm has become a prominent figure in the “buy now pay later” area offering point of sale. The company allows customers to finance online purchases that can be repaid in monthly installments without accruing compound interest.

It operates with about 6,500 retailers, including Peloton, Wayfair, Walmart and eyewear company Warby Parker. In an update to its IPO archive, Affirm said it is used by more than 6.2 million people. Affirm also partnered with Shopify last year, enabling merchants to offer installment loans on products they sell.

Confirmation brought approx. $ 510 million in revenue for the fiscal year ending June 30, a 93% jump from last year, according to its archives. In the three months ending September 30, revenue increased by 98% year over year, while net losses decreased by approx. half to $ 15.3 million.

Confirm make money when they help a grocery store sell. It also earns interest income on loans it buys from bank partners and some consumer loans. The rate they charge varies according to 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 trade.

Morgan Stanley, Goldman Sachs and Allen & Co were leading insurers for the offering. Major investors include the Peter Thiels Founders Fund, Khosla Ventures and Lightspeed Venture Funds.

Affirm’s market debut could mark another successful venture for Levchin, which owns 27.5 million shares in the online lender. Following PayPal’s sale to eBay in 2002, Levchin started the social application company Slide. It sold to Google in 2010 for a reported $ 182 million.

Confirmation acting under the symbol “AFRM” has reached CNBC’s Disruptor 50 list twice.

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