A PayPal insider, part of the “PayPal Mafia,” is launching a new initial public offering . . .
And it’s expected to go public Jan. 13 on the NASDAQ.
Financial technology companies – also known as “fintech” – have been booming. And one new player is getting ready to launch an IPO.
The company is called Affirm (private).
Affirm was founded my Max Levchin. He was a co-founder of PayPal (NASDAQ: PYPL) with Peter Thiel and Elon Musk. This PayPal insider was also an early investor and chairman of Yelp (NASDAQ: YELP).
PayPal’s founders have gone on to create dozens of successful ventures. They’ve been nicknamed by some as the “PayPal Mafia.”
Affirm provides loans to online shoppers. This allows people to finance their online purchases at the time of checkout. And it’s becoming popular on larger purchases.
Consumers pay 0% – 30% annual interest on its loans.
Peloton Interactive (NASDAQ: PTON) is the largest Affirm client, accounting for 30% of sales. Over 6,500 merchants currently use Affirm – including TheRealReal, Eddie Bauer, Expedia and Eventbrite.
Affirm’s latest quarter showed revenues of $174 million, a 97% increase from 2019.
Like many Silicon Valley tech stocks, Affirm is losing money. The latest quarterly net loss totaled $15 million.
Inside the Affirm Initial Public Offering
In 2019, Affirm raised $300 million at a $2.9 billion valuation.
Pre-IPO investors included Thrive Capital, which is led by Jared Kushner’s brother. In addition, Fidelity, Wellington and actor Ashton Kutcher participated.
Affirm will go public on Wednesday, Jan. 13. The official IPO price range is $33 – $38 per share.
Shares will trade on the NASDAQ with the ticker symbol AFRM.
Affirm expects to raise $935 million in capital at a $9 billion valuation.
Affirm isn’t the only upcoming IPO to watch . . .
One of my favorite new EV stocks is expected to IPO before March.
The company is making next-generation lithium-ion batteries. They could be used by automakers around the world. And also used to power buses, trucks and other commercial vehicles.
Private equity and venture capital firms have already invested over $425 million in capital in this PRIVATE EV battery stock.
Wall Street is now lining up to invest $475 million in a Pre-IPO financing.
This EV stock plans to IPO in early 2021.
That’s why I’m hosting an urgent briefing on this situation.
Yours in Wealth,