I'm trying to understand how Affirm raised a fresh funding round valuing the company at $2.9B, when I haven't encountered a single Affirm customer (be it a person or company). More to the point, how many all-time transacting users does the company have, and how much annual revenue?
Don’t look too much. Answer is Max Levchin
If you’re raising $300M and at $2.9B, that’s not based on name.
It’s not for highly paid software engineers, that’s why.
From what I've over heard from the affirm folks, it sounds like they're got a pretty solid customer base. I know my company briefly was working on a product with them for our users
There are many many many people who do not have a 12-15k monthly paycheck. Affirm's customer base is that. Who make decent monthly to manage a family of 4 but not enough to buy something full in cash. Heck, even I use affirm to buy some things as it gives me 0Percent interest. I put the principal in a moneymarket
"There are many many many people who do not have a 12-15k monthly paycheck. Affirm's customer base is that." I'm aware of the company's business model, and perhaps the argument is that labor automation enables them to grant lower interest rates than competing lenders. But how many people have actually used Affirm?
Our underwriting credit model’s better accuracy is largely what lets us grant lower interest rates. I suppose yes, there’s less bloat than major lenders too.