Well in many ways, it appears we’re kicking off 2021, right where we left a tumultuous 2020. But regardless of the optics, it’s not all bad.
After a record-setting, 480 IPOs debuted in 2020 headlined by the likes of Snowflake (SNOW), Airbnb (ABNB), DoorDash (DASH), Palantir (PLTR) and more, today we see Affirm (AFRM) kicks things off, setting the bar high for the long list of names expected to go public this year.
If you’ve done much online shopping in the last year (joke), you might have noticed a company called Affirm, offering a “buy-now-pay-later,” interest-free payment option. Founded by Max Levchin, co-founder of the fintech giant Paypal (PYPL), Affirm essentially offers customers “0% APR” installment payment options by taking a cut of the merchant’s end of the transaction. With more than 6.2 million customers utilizing Affirms service across 6500 stores like Peloton (PTON), Wayfair (W), Walmart (WMT), it’s already gaining traction in the U.S.
Affirm had been near the top of the list of many IPO watchers, who this morning saw the company’s stock jumped more than 100%. Pricing its IPO at $49 apiece, which sat just above its target range of about $44, investors saw shares of Affirm shoot up to over $90 already today when trading began.
“Our goal is to be a viable alternative to credit cards.”
With a base well over six million and growing, it looks like they’re certainly off to a good start.