Affirm, the company which offers instant loans for online purchases, announced on Monday that it has raised another $200 million in equity.
The San Francisco-based company’s Series E funding round was led by Singapore’s sovereign wealth fund GIC, and saw participation from Khosla Ventures, Lightspeed Venture Partners, Founders Fund, Spark Capital, Caffeinated Capital, Ribbit Capital, and others. This round brings its total equity funding to $450 million. It also brings its valuation to a reported range of $1.5 billion to $2 billion, according to The Wall Street Journal, up from a previous valuation of $800 million.
“GIC is one of the world’s most respected fund management companies and has been investing in technology for a very long time,” said Affirm’s founder and CEO Max Levchin. “We are excited to have GIC as a long-term partner that offers a unique network and insights on the evolving global fintech market.”
Affirm plans to use this new funding to expand the number of retailers it works with and to introduce new products and services. Levchin also said that the company plans to expand internationally.
Founded in 2012 by PayPal co-founder Max Levchin as an alternate to credit cards, Affirm offers point-of-sale loans at checkout for online purchases. The loans typically last for 3, 6 or 12 months and have annual interest rates between 10 and 30%. The company has made over one million dollars in loans since inception and currently works with about 1,200 retailers, such as Wayfair, Expedia, Casper and Cole Haan.
Affirm recently introduced a virtual credit card that allows consumers to buy products from retailers outside its limited network. “It doesn’t require the merchant where you’re planning to spend the money to even be aware of Affirm,” said Levchin.