Key facts
- Affirm Holdings Inc. and CPP Investments have renewed their capital partnership.
- CPP Investments will provide Affirm with up to $1 billion in additional capital.
- The capital will be provided through a forward flow transaction.
- The partnership aims to support Affirm's growth in the buy now, pay later market.
Affirm Holdings Inc., a prominent player in the buy now, pay later (BNPL) sector, announced the renewal and expansion of its capital partnership with CPP Investments, one of Canada's largest pension funds. The renewed agreement includes a commitment from CPP Investments to provide Affirm with up to $1 billion in additional capital. This funding will be channeled through a forward flow transaction, a mechanism that allows for the continuous purchase of future loan receivables. The primary objective of this expanded partnership is to bolster Affirm's financial capacity, enabling it to pursue further growth initiatives and enhance its offerings within the competitive BNPL landscape. This strategic alliance underscores the confidence of major institutional investors in Affirm's business model and its potential for sustained expansion.