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.