Singapore sovereign investor GIC has led a $200m Series E financing round for consumer payment loans business Affirm.
Khosla Ventures, Lightspeed Venture Partners, Founders Fund, Spark Capital, Caffeinated Capital and Ribbit Capital also took part in the financing round for the company, which aims to allow consumers to pay for purchases over monthly instalments, with simple loans that don’t have compounding interest or late fees.
The company settles the bill with the merchants within three business days, and takes on all issues associated with repayment and fraud to remove risk for the sellers.
Affirm said the line of equity would be used to increase the company’s credit distribution capacity, and to grow its partnerships team, which currently has more than 1,200 merchants. Its partnerships include Wayfair, Expedia, Goodyear, Motorola, DJI, Casper, and Cole Haan.
Affirm founder and CEO Max Levchin said, “Our goal is to be the app on your home screen for all of your financial needs. We are starting by reinventing credit because we believe it is fundamentally broken. But, this is just the beginning.”
This latest wave of investment brings the company’s total funding efforts to $450m. Last year the firm raised $100m in a credit facility from Morgan Stanley.
Last month, GIC led a £90m investment into challenger bank OakNorth for a 10 per cent stake in the company.
The investment came just a month after the bank had raised a £154m investment round from The Clermont Group, Toscafund and Coltrane.
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