GIC returns as lead investor in Affirm’s $500m Series G funding

Max Levchin, CEO and founder of Affirm

Singapore wealth fund GIC Pte has anchored a $500 million funding round in Affirm, a consumer credit unicorn led by Paypal co-founder Max Levchin, according to a statement.

The latest funding round also saw participation from Lightspeed Venture Partners, Wellington Management Company, Baillei Gifford, Spark Capital, Founders Fund, and Fidelity Management & Research Company.

GIC is a return investor in US-based Affirm, which has so far raised $1.3 billion. The Singapore wealth fund had also backed Affirm’s Series F funding in April 2019. It first entered the firm in December 2017 by leading the startup’s $200-million Series E funding round.

“We’re excited about this vote of confidence from both new and existing investors as we advance our mission to build honest financial products that improve lives,” said Max Levchin, CEO and founder of Affirm.

Founded in 2012, Affirm offers installment loans to consumers at the point of sale. This gives consumers the flexibility to determine how long it will take to pay for something before actually buying the item.

Unlike payment options that have compounding interest and unexpected costs, Affirm shows customers upfront exactly what they will pay each month — with no hidden fees, the company claims.

Affirm is also introducing an interest-free biweekly payment product for transactions as low as $50, as part of its continued growth plan. As with Affirm’s existing monthly payment options, consumers will never be charged late or hidden fees when using this new product.

The latest product, Levchin said, is another step towards Affirm’s goal of becoming as ubiquitous as credit cards.

Commenting on GIC’s investment, Choo Yong Chen, chief investment officer of private equity, said the fund’s steady investments in Affirm is a testament to the company’s strong business model. “We are pleased to support Affirm as they continue to strengthen their offering in the consumer finance space,” Choo said.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.