i.

In-Depth Profile
of Affirm
Buy Now Pay Later Industry Report
In-Depth Profile on Affirm

Payments: Consumers can pay with

debit cards, bank transfers or personal
checks; No late, service or
prepayment fees
CEO: Max Levchin
Headquarters: San Francisco, CA
Mobile App: Manage account and
Founded: 2012 payments; Buy now and pay over time
• Affirm offers fixed-rate installment loans to consumers at using an Affirm virtual card
checkout or the point-of-sale
Modern Security: Connects directly to online stores; Accounts
− Rates range from 0% - 30% APR based on a consumer’s always stay secure
credit; this credit rating is transparent and is shown at
checkout Integration: API and comprehensive support for both in-house
solution or e-commerce platform
− Pricing on Affirm’s platform is real-time and adaptive
based on algorithmic data that prices marginal risk and
generates a score for every transaction Expanded Reach: Advanced underwriting that looks beyond FICO
score; Designed to reach those overlooked by traditional credit
• Affirm aggregates data on individual consumers from atypical system
sources, such as public data and social media, to evaluate
creditworthiness in addition to FICO score

• Consumers can use Affirm to pay for purchases of any amount

from $50 to $17,500

Flexible Transparent Fair

Total amount No late fees or
Individuals choose
disclosed upfront penalties of
payment schedule
and will never any kind
increase

Sources: Company website, Company press release

FT Partners 112
Buy Now Pay Later Industry Report
In-Depth Profile on Affirm (cont.)

How it Works Features

Step One
• Customer fills their cart
‒ Customer can choose from thousands
of sites and stores and select Affirm at Affirm Go App/Marketplace Virtual Card
Checkout
At select stores, if an App provides tailored When a customer is
‒ The customer then enters in a few order is less than $250, and exclusive offers approved for a loan,
pieces of top-of-mind information for a customer can pay with from merchants on they can have the
real-time decision AffirmGo, which is a marketplace where 32% loan amount loaded
Step Two three-payment plan with of FY 1Q2021 onto a virtual VISA
0% APR transactions occured card
• Customer chooses how to pay
‒ Select preferred payment schedule and
then confirm the loan
‒ Full fee transparency at checkout Affirm Savings Account The Affirm Card

Step Three Affirm offers interest-bearing The Affirm Card allows

savings accounts, available from consumers to pay upfront, from
• Customer makes easy monthly payments the Affirm app, with no minimum their bank account, or pay later,
‒ Customer downloads Affirm app or deposit requirements and no by using a unique post-purchase
signs in at affirm.com to make fees feature
payments
Key Metrics
‒ Can pay via debit card, checking
account or check for all Affirm
purchases 5.4 mm 64% 11,500
‒ For certain purchases, consumers can
Active From Repeat Active
pay by credit card for the down payment Consumers (1) Customers (2) Merchants (1)
and installments

Sources: Company website, Company press release, Prospectus, FYE June

FT Partners 1) As of March 31, 2021 113
2) For fiscal year 2020
Buy Now Pay Later Industry Report
In-Depth Profile on Affirm (cont.)

The Affirm Network Strengthens with Every Transaction

More
Consumers

Better Stronger
Experience Ecosystem

Deeper More
Data Insights Merchants

Significant Additional
GMV Growth Products

Sources: Company prospectus

FT Partners 114
Buy Now Pay Later Industry Report
In-Depth Profile on Affirm (cont.)

Apr. 2019

$300 mm
Lead Investor(s):
Historical Post-Money Valuation ($ in mm)
v
Other Participants:
Corresponding Transaction Dec. 2017 Fidelity Management & Research Company;
Baillie Gifford; Wellington Management;
$200 mm Sound Ventures; Founders Fund; Government
of Singapore Investment Corporation; Spark
Lead
Investor(s): Capital; Lightspeed Venture Partners; Moore
Asset Backed Fund; Ribbit Capital

Apr. 2016
v
Other Participants:
Khosla Ventures;
May 2015
$100 mm Lightspeed Venture
Partners; Founders
$275 mm Lead Fund; Spark Capital;
Caffeinated Capital; Sep. 2020
Investor(s):
Lead
v
Ribbit Capital
Investor(s):
$500 mm
Jul. 2012 v Other Participants: Lead

$8 mm
Investor(s):
Other Participants: Andreessen Horowitz;
Jun. 2014
Lead Khosla Ventures;
Lightspeed Venture
Partners; Khosla v
v
Investor(s): $45 mm Lightspeed Venture
Partners; Andreessen
Ventures

v
Other Participants:
Lead Horowitz; Jefferies
Seedcamp; Point
Investor(s):
Nine; Venrex; Index
Other Participants:
Ventures; Digital
Peter Thiel; David Space Ventures
Sacks

NA
(1)

Sources: Company Website; FT Partners’ Proprietary Transaction Database; PitchBook

FT Partners 1) Market Capitalization at close on 1/13/2021 (first day of trading) 115
Buy Now Pay Later Industry Report
In-Depth Profile on Affirm (cont.)

Founder & CEO: Max Levchin

Headquarters: San Francisco, CA UNITED STATES

SECURITIES & EXCHANGE COMMISION
Founded: 2012
Form S-1
Employees: 916

Prospectus File Date: November 18, 2020 Affirm Holdings, Inc.

Ticker: NASDAQ: AFRM

Gross Proceeds: $1,205,400,000*

Shares: 24,600,000

Initial Filing Range $33 – 38

Revised Filing Range $41 – 44

Max Levchin
Listing Date: 1/13/2021
Chief Executive Officer
Offer Price: $49
650 California Street
01/13/21 Closing Price: $97.24 San Francisco, California 94108
United States of America
Use of Proceeds
Affirm intends to use the net proceeds for general corporate purposes,
including working capital, sales and marketing, engineering and
technology, and corporate development

Sources: Company website, prospectus

FT Partners *excludes greenshoe 116
Buy Now Pay Later Industry Report
In-Depth Profile on Affirm (cont.)

07/09/2021
NasdaqGS: AFRM
IPO Offer Price $49.00

$140 Current Price $67.25

Market Cap $17.83 bn

Low $46.50
$120
High $146.90

$100

$80

$60

$40
13-Jan-21 13-Feb-21 13-Mar-21 13-Apr-21 13-May-21 13-Jun-21

Sources: Capital IQ as of 07/09/21

FT Partners 117
Buy Now Pay Later Industry Report
In-Depth Profile on Affirm (cont.)

Revenue Concentration (1) Selected Merchant Partnerships Across Verticals

100 %

90%

80%

65% 63%
70%

60%

80%
86%
50%

40%

30% 7% 7%

20%

28% 30%
10%

20%
Customer Breakdown
14%
6.8%
0%

FY2019 FY2020 1Q2020 1Q2021

Other Next Top 9 Customers Combined Peloton 12.4%
Millennials
Gen X
• Affirm’s top merchant partner, Peloton, represented about 47.8%
28% of the Company’s total revenues in fiscal 2020 Baby Boomers

• Peloton accounted for 30% of total revenues in the first Gen Z

quarter of fiscal 2021, compared to 14% in the prior year 32.3%
quarter, as home fitness equipment purchases increased
significantly due to the COVID-19 pandemic

Sources: Company prospectus; Fiscal year ends on June 30th

FT Partners (1) Company only discloses top 10 customer concentration for fiscal 2020 and Q1 fiscal 2021. For FY 2019 and Q1 2020, “Other” includes all non-Peloton merchants. 118
Buy Now Pay Later Industry Report
In-Depth Profile on Affirm (cont.)

Revenue by Segment
600
Servicing income
Revenue Less Transaction Costs
($ in mm) ($ in mm)
$510 Gain (loss) on sales of
500

15 32
loans
Virtual card network $161
19
400
revenue $134
+93% Interest income
187 +198%
300
5 $264
8 +67% $231
$54
3 14
119
200

$138 8
257 10 95
6
100

52 16
132
67 98 ($9)
0

FY2019 FY2020 3Q2020 3Q2021 FY2019 FY2020 3Q2020 3Q2021

Provision for Credit Losses Net Loss
($ in mm) ($ in mm)

59.5%

29.5% $105 ($86)

$78 +35% $82 ($120) ($113)
20.6%

-0.5%
($247)
-$1
FY2019 FY2020 3Q2020 3Q2021 FY2019 FY2020 3Q2020 3Q2021

Sources: Company prospectus; Fiscal year ends on June 30th

FT Partners 119