Max Levchin’s Affirm raises $300 million in latest funding round

Max Levchin’s Affirm raises $300 million in latest funding round

FILE PHOTO: The PayPal logo is seen at an office building in Berlin, Germany, March 5, 2019. REUTERS/Fabrizio Bensch/File Photo

(Reuters) – PayPal Holdings Inc co-founder Max Levchin’s Affirm has raised $300 million in a funding round led by Thrive Capital that included actor Ashton Kutcher and Guy Oseary’s Sound Ventures as one of its new investors.

The latest round of funding boosts the consumer lending company’s total financing to about $800 million, the company said in a statement.

Affirm was valued at $2.9 billion in the latest funding round, financial news website Axios said, citing sources. Reuters could not independently confirm the valuation.

The company plans to use the funds for hiring and expansion.

Fidelity Management and Research, Lightspeed Venture Partners and Scottish fund Baillie Gifford were among its other investors.

Levchin started Affirm in 2013 to give consumers without credit history or savings accounts access to small loans. The startup offers financing for online purchases, such as a couch or guitar, which is paid back in monthly installments.

For Levchin, Affirm is something of a PayPal 2.0, using big data analytics and highly complex security systems to offer consumers an alternative to traditional banks.

Reporting by Bharath Manjesh in Bengaluru; Editing by Anil D’Silva

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