Max Levchin’s Affirm seeks capital amid surge in fintech funding
Another consumer finance business is lining up investors for its largest cash infusion yet.
Affirm, founded by PayPal’s Max Levchin, is said to be raising as much as $1.5 billion in a combination of debt and equity, according to people with knowledge of the company’s fundraising activities. Jared Kushner’s New York venture capital firm Thrive Capital is said to be leading the financing, with participation from the San Francisco outfit Spark Capital.
Affirm declined to comment. Representatives of Thrive and Spark, existing Affirm investors, have not responded to a request for comment.
Sources familiar with Affirm, which gives consumers an alternative to personal loans and credit by financing online purchases at point-of-sale, presume the round will be made up largely of a line of credit from a large financial institution, known as a warehouse facility.
Affirm recently raised a $300 million Thrive-led Series F round in April at a valuation of $3 billion. Fintech companies focused on payments and lending, however, require a vast amount of capital to sustain operations. Those capital requirements coupled with the frothiness of the venture capital market justify this additional cash infusion.
To date, Affirm has raised $1.03 billion in funding from Ribbit Capital,