Affirm, the San Francisco buy-now, pay-later startup led by PayPal cofounder Max Levchin, has priced its IPO in the range of $33 to $38 per share, implying a valuation of $8 billion to $9.2 billion.
Affirm lets people pay for retail items like Peloton bikes and Swatch watches in installments as an alternative to putting them on credit cards. The surge in online shopping caused by the pandemic has been a big boost to its business. Between November 2019 and July 2020, Affirm nearly doubled its U.S. users to 5.6 million.
As a private company, Affirm last raised funding in September 2020 at a valuation of roughly $5 billion. It was founded in 2012.
The buy-now, pay-later space is becoming increasingly competitive, with companies like Afterpay, Klarna and PayPal each boasting millions of customers. Five-year-old Afterpay trades publicly in Australia and is worth $26 billion. Klarna was recently valued at $10.7 billion.
Affirm could start trading as a public stock as early as next week, says a person familiar with the matter.