- Affirm is only the second BNPL company to go public.
- COVID tailwinds, key agreements, and legendary management give the company solid footing on which to stand.
- However, the business model is currently dependent on a single banking partner to finance its loans, while Peloton makes up 30% of its revenue.
- Other risks include regulation, fierce competition from peers with better KPIs, and an unproven sustainable growth strategy.
- There's a lot to like from PayPal Mafia's latest public unicorn, but we remain unconvinced on the long-term investment front for now.
For further details see:
Affirm: We'll Be Cheering On The Sidelines For This One