Lender Affirm, a Peloton Partner, Looks to Raise $935 Million in IPO

Affirm Holdings, a lender that provides payment installment loans for online shoppers, is seeking nearly $935 million in an IPO. The San Francisco-based company will reportedly begin trading on Jan. 13. 

Affirm plans to sell 24.6 million shares at $33 to $38 each, it said in a filing on Tuesday. Based on outstanding shares listed in the filing, the company would have a market value of $9.22 billion after the IPO. 

More than 6,500 merchants use Affirm’s technology to offer shoppers payment schedules at an annual interest rate of 0% to 30%. 

Connected fitness company Peloton accounted for about 28% of Affirm’s total revenue in the 12 months through June 2020. The companies offer 0% APR financing on Peloton equipment purchases, which start at $1,895. 

Affirm’s next nine biggest clients accounted for less than 10% of revenue combined. The company listed its dependence on Peloton as a potential risk factor in the IPO filing. 

Founded in 2012 by PayPal co-founder Max Levchin, Affirm made $510 million in its last fiscal year, a 93% increase over the prior year.