Paypal led fintech startup Affirm has raised $100 Mn from investment bank Morgan Stanley.
The raised funds will help the company to expand its consumer lending business. A company statement said Affirm “will leverage the facility to continue its expansion of consumer-friendly point-of-sale financing at leading online and offline retailers.”
Affirm was founded in 2012 by Nathan Gettings, Jeffrey Kaditz, and Max Levchin with an aim to disrupt the credit card industry. It offers consumers an alternative to traditional credit with a straightforward, transparent loan product.
According to an official statement, consumers can finance purchases through Affirm, which sets interest rates based on “proprietary technology to verify identity and assess credit risk in seconds.”
As claimed by the company, it has agreements with more than 750 merchants. To date, it has raised more than $400 Mn including the current funding round.
Earlier in April 2016, Max Levchin also participated in $1.3 Mn funding round of fintech startup Cleartax, marking a debut to his Indian investment. Recently, in August 2016, it also launched PayPal.me– a new peer -to-peer payment feature which allows receiving payment via the click of a link in a fast, convenient, and personalised way.
A few Indian players in the online financing space are Fullerton, Capital Float, Biz2Credit and more.