Affirm, an online lender at which Max Levchin is co-founder and Chief Executive Officer and PayPal’s co-founder, raised 275 million dollars in new capital from Spark Capital Growth, Jefferies, Andreessen Horowitz, Khosla Ventures and Lightspeed Venture Partners.
The startup will use the majority of the round’s capital as debt that the company expects to lend out to its customers, an average of $400 at a time.
Affirm helps people pay in installments for purchases, with a sliding scale 10 to 30% annual markup. The customers of the San Francisco company are financially responsible, but with a limited budget or credit history and a wariness of credit cards.