Online lender Affirm joins year-end rush for IPOs

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Affirm., which provides installment loans to online shoppers, filed for an initial public offering, reporting revenue gains and shrinking losses.

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

Affirm joins a class of consumer technology companies seeking to tap the public market before the year ends. Airbnb and DoorDash filed this month for IPOs, with filings still possible by other companies.

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

For the third quarter, Affirm had 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. Levchin is the company’s single biggest shareholder, according to the filing. Other large owners include Khosla Ventures, Founders Fund, Lightspeed Venture Partners, Jasmine Ventures and Shopify Inc. The company said its Class B shares will carry 15 votes each, while the Class A shares sold in the IPO will have one vote each.

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

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