Financial services and payments technology provider Affirm says it has raised $100 million in a round of equity funding.
San Francisco-based Affirm received the financial boost from Founders Fund and existing investors Lightspeed Venture Partners, Spark Capital, Khosla Ventures, Andreessen Horowitz, Jefferies and other new investors.
The new round of financing will increase Affirm’s loan distribution capacity and grow its merchant clientele, which increased from 100 to more than 700 in the last year, and expand new financial product offerings beyond point-of-sale financing.
The company also hired former Avangate executive and Amazon sales leader Len Eschweiler as a senior vice president of retail. Eschweiler joins Affirm with more than 17 years of e-commerce, retail and media experience. He will lead Affirm’s efforts to scale its merchant business.
Affirm’s model is designed to reach a broader population of consumers using advanced technology and analytics that look beyond traditional FICO scores. Affirm gives shoppers the flexibility to make monthly payments for their purchases, but without unexpected interest or extra fees, the company said, contending it notifies customers what they’ll pay up front.
Nearly a year ago, Affirm founder and CEO Max Levchin, who was also a founder of PayPal, raised $275 million in a funding round as it moved more aggressively to establish its Buy With Affirm e-commerce payment and consumer-loan product.
“Max changed the payments industry forever with his work at PayPal, and we think Affirm is positioned to be just as impactful,” Founders Fund partner Brian Singerman said in an April 13 press release. “Affirm’s technology brings much-needed transparency and accountability to a stagnant industry that’s no longer meeting the needs of consumers.”
In July 2015, Levchin resigned from his position as chairman on the Yelp board of directors, citing his time commitment to Affirm. Levchin had served on the location-based online listing site's board for 11 years.In 2014, Levchin began to position Affirm as a player on the payments landscape in bolstering consumer options for online shopping.