At a glance:
When Affirm became public in 2021 and made Max Levchin an instant billionaire. His net worth is $2.2 billion in 2022, a decrease of around $800 million from what he had back in 2021.
Affirm began trading on NASDAQ with the symbol AFRM on January 13, 2021. On that day, the company raised around $1.2 billion in its IPO. The next day, the price of shares had doubled making Levchin’s stake in the company $2.5 billion.
Affirm is a buy-pay-later-company, where shoppers or consumers can buy stuff and pay later. This is how it works, consumers can register on their website or mobile app, and it works the same.
After registering, you are ready to shop. It’s that simple. After choosing what you want from their platform’s hundreds of thousands of shops from merchant partners, Affirm would ask you to choose whether you will have their “4 interest-free payments” or “monthly installments”. You choose a plan and you pay that amount on a scheduled date.
And that’s about it. That’s how Affirm works.
Affirm does not charge its consumers any late fees at all. Merchants also pay no integration fees, annual fees, or monthly fees for using their services. Affirm earns revenue in five ways:
Affirm commonly offers two types of payment options:
Aside from these two, consumers can also be financed by Affirm with purchases up to $17,500.
Also, the downside that most people find in Affirm is that it has a high interest that climbs up to 30%. However, with the length that some merchants allow, 30% is just fair and very affordable.
Affirm generated a revenue of $1.35 billion at the end of fiscal year on June 31, 2022. It increased by 55.01% in year-over-year growth.
Source: Google Finance
At the end of the fiscal year on June 30, 2022, Affirm’s revenue in the merchant network segment was $458.51 million, and $100.70 million for the virtual card network segment.
These are Affirm’s revenue per region at the end of each fiscal year.
Affirm spent $2.21 billion on their operations at the end of fiscal year 2022. It is 76.80% more than they spent at the end of the fiscal year on June 30, 2021.
Affirm spent $74 million on advertisements in 2022. This is a large increase compared to their advertising expense in 2019, about 28 times more money spent.
Affirm had made $703.14 million in profits at the end of the fiscal year 2022.
Affirm raised a total of $1.5 billion over 12 funding rounds. Their latest funding was on January 13, 2021 for their Post-IPO Equity round.
Affirm had only made 2 investments so far. These are:
Affirm has a valuation of $24 billion
Affirm has a market capitalization of $3.68 billion.
Source: Google Finance
In 2021, Affirm had a market share of 36%, dominating the BNPL industry.
However, in 2022, Klarna took over the lead where Affirm only had 19.6% in market share.
Affirm had a total of 27 investors through the years. The table below shows us their most recent investors.
Affirm had a gross merchandise value (GMV) of $17.00 billion at the end of the fiscal Year on June 30, 2022, more than twice what they processed in 2021.
There are 13.98 million consumers using Affirm at the end of the fiscal year 2022.
Affirm also stated that there are more than 15 million consumers using their platform as of December 2022.
According to Affirm, each active consumer has an average of 3 transactions per year.
As of December 2022, there are 245,000 active merchants in Affirm.
With over 245,000 merchants on their platform, Affirm has partnered with the largest sellers in the world. They are Amazon’s exclusive BNPL partner through January 2023. They are also partnered with Gucci, Walmart, and others. Here are some of their largest merchant partners.
Affirm reported that their dollar-based merchant retention rate has been constantly exceeding 100% since 2016.
At the end of fiscal year on June 30, 2022, 81% of Affirm’s loan transactions are driven by repeat consumers, an increase of 9% compared to what the company had at the end of fiscal year 2021.
Affirm had a total of 34.29 million transactions on March 2022. These are calculated by multiplying the number of consumers with the average transaction per customer.
As of 2022, there are 2,552 employees working at Affirm.
Affirm works with U.S.-based and Canada-based businesses. As well as businesses based outside the U.S. as long as these conditions are met:
Furthermore, the company can only provide their pay-over-time solution to U.S. and Canadian shoppers.
People spend an average time of 00:02:56 on their visits on affirm.com.
These are the key stats and key info on Affirm mobile app on Android as of December 2022:
These are the key stats and key info on Affirm mobile app on iOS as of December 2022:
Ch Daniel is the co-founder of SignHouse and chairman of the CH Group. Daniel is leading the development of SignHouse's product, as well as strategising how else the company can reach its main mission: empowering 100M+ to use the world's most efficient document organisational tools.