A new round of fundraising for Stripe Inc. has made the fintech company one of the most valuable startups in the world.
Stripe said on Sunday it raised $ 600 million from a group of investors that included Ireland’s National Treasury Management Agency and insurers Allianz SE ALIZY. 0.16%
and AXA SA
and investment managers Baillie Gifford & Co. and Fidelity Investments. The round valued Stripe at $ 95 billion, more than 2½ times the valuation it obtained in a fundraising round in 2019.
Thanks to the new fundraiser, Stripe is now worth more than other beloved startups like Instacart Inc. Globally, it still lags behind Chinese fintech giant Ant Group Co. in valuation terms.
As a payment processor for fast-growing Internet businesses and startups, Stripe benefited from the pandemic-induced online shopping boom. Stripe customers, including DoorDash Inc.,
and Wayfair Inc.
all experienced an increase in demand as consumers diverted their spending from traditional outlets.
“We are bigger now than all e-commerce [market] that’s when we started Stripe, ”said Dhivya Suryadevara, Stripe’s chief financial officer, in an interview. Stripe was launched in 2010.
In the pandemic, some small businesses were dissatisfied with the steps Stripe and other payment processors took to protect themselves from potential losses. The maneuvers, which sometimes included making companies wait additional days or even months to access the money deposited in their accounts, intensified the cash crisis in many companies.
Stripe does not disclose its payment volumes or financial results. The company said in a statement that it processes payments worth hundreds of billions of dollars a year for millions of companies around the world and that it counts as clients more than 50 companies that use Stripe to process more than one billion dollars. year.
Beyond payments, Stripe has been adding more financial services to the products it offers to customers. In December, Stripe announced that it would partner with banks such as Goldman Sachs Group. Inc.
and Citigroup Inc.
offer checking accounts and other commercial banking services to merchants.
Investors have long viewed Stripe and other payment companies as a way to expose themselves to a variety of fast-growing industries. More recently, however, some have started to wonder if the Covid-driven surge in tech stocks is overstated, and they are beginning to rotate from popular tech companies to established industries like banks and industrialists.
With the new financing, Stripe plans to increase its European business. The San Francisco-based company recently named Dublin as a second headquarters and added former Bank of England Governor Mark Carney to its board of directors.
Closer to his home in California, Stripe has entered the fray of political discourse that other tech giants are going through. After the pro-Trump riots on Capitol Hill in January, it stopped processing payments for President Trump’s fundraising apparatus.
Write to Peter Rudegeair at [email protected]
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It appeared in the print edition of March 15, 2021 as ‘Fintech Stripe valued at $ 95 billion’.