Affirm, the financial technology company led by PayPal co-founder Max Levchin, announced it raised $275 million in debt and equity financing. Spark Capital Growth led the investment and was joined by other new investors Jefferies and Andreessen Horowitz and existing investors Khosla Ventures and Lightspeed Venture Partners.

The new round of financing will be used to increase significantly Affirm’s loan distribution capacity, grow its merchant services efforts, offer customers lower cost loans, and develop new products. The company will also be able to reach more consumers, and develop and launch brand new products and services.

Affirm is reimagining financial services starting with a transparent and simple, new way to get affordable financing online at the point of sale. Affirm lets shoppers pay for purchases across multiple months via transparent, simple interest loans, at fair rates.

“Today’s financial services industry is not well-equipped to handle the needs of the largest consumer generation in history,” said Levchin. “We’re building a financial technology company for the next generation, and for anyone who expects more from their financial service providers.”

“We share Affirm’s vision to create better, more transparent financial services products, using large-scale data to improve credit decisions,” said Jeremy Philips, general partner of Spark Capital Growth, who is joining Affirm’s board. “Max has the team, vision and experience to build the leading company in this important new category.”

“We price every loan to the transaction, the consumer, and the merchant,” said Levchin. “There’s no compounding interest, hidden fees, or debt calculators here; this is a simple, fixed-term loan, and the approval is in real time, so you know how much you’re borrowing, and what your payments will be each month before you make your buying decision. We think of it as the future of honest finance.”

Affirm is a financial services technology company reimagining consumer finance by providing new and innovative ways of financing purchases at the point of sale.