“That is how the brokerage system is set up.” “The brand only matters to part-time and inexperienced agents who use the big brand as a way to make consumers believe that they are actually experienced,” he continued. “Consumers prefer boutique experiences to big brand experiences in all things in life, that’s just a fact,” he said via email after declining an interview for this story - an uncharacteristic move for the typically vocal entrepreneur. Side’s co-founder and chief executive, Guy Gal, calls this “a big brokerage lie.” The cardinal rule, they argue, is that consumers trust big brands more than individual agents. Side’s critics - and even its supporters in the brokerage world - say that the company fills a niche, but it could never displace the big household names that have dominated for decades. The fundamental stumbling block Side must overcome is one of name recognition. Side’s model pits its agents and back-end suite of tools and support teams against legacy firms entrenched in their markets and supported by long-cultivated relationships with local business and political establishments. But as the brokerage prepares to go public and enter New York City’s dog-eat-dog market, questions swirl around how its behind-the-scenes model will scale - and whether agents will buy into the pitch.
To both its champions and its rivals, Side’s ascent represents tech investors’ zeal for residential real estate. A few months later, that valuation more than doubled to $2.5 billion after Tiger Global Management, the world’s most active venture investor in the second quarter, led a $50 million round.
IPOS 5 IOS 9.3.5 NOT HOLDING CHARGE SERIES
“The pandemic has created a favorable environment as more value-conscious shoppers are seeking ways to finance online purchases in a seamless manner,” MKM Partners analyst Rohit Kulkarni wrote in a pre-IPO note to clients.Īffirm works with bank partners who originate many of the company’s loans.In March, the white-label brokerage’s $150 million Series D propelled its valuation above $1 billion. The company posted a net loss of $112.6 million, compared with a loss of $120.5 million in the year-prior period. Which accounted for about 28% of Affirm’s revenue in its latest fiscal year that ended in June. Affirm saw revenue of $509.5 million during its last fiscal year, up from $264.4 million a year earlier. The company’s biggest customer is Peloton Interactive Inc. Levchin predicted that the majority of established players would shift to simple-interest products over compounding ones.Īffirm IPO: 5 things to know about the fintech company shaking up online credit “Revolving credit is a tool that’s not as useful as it is dangerous,” he said in an interview after trading began. Levchin told MarketWatch that transparency in terms of how much consumers will ultimately be paying for a given purchase is becoming “a required feature and not a nice-to-have” among the generations that are currently “financially active” and the ones to follow. Affirm has an interest-free “0% APR” offering as well as a “simple-interest” loan product through which it also gets paid on the consumer end of a transaction. The company receives compensation from merchants when customers opt for one of Affirm’s lending options. Affirm reportedly delayed its IPO from late last year given the big first-day stock moves for Airbnb Inc.Ĭo-founder Max Levchin, offers payment options that let people make online purchases in installments. Underwriters have access to an overallotment of 3.7 million shares beyond the original 24.6 million shares that Affirm sold through its IPO. The company raised at least $1.2 billion through the offering.
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