Stripe bags $600m in fresh funding to hit $36bn valuation
Stripe, the Silicon Valley-based payments platform, has raised $600 million in new funding, valuing it at nearly $36 billion.
First reported by Axios, the fintech’s co-founder and president John Collison confirmed that this capital raise is an extension of Stripe’s Series G round which closed last year on $250 million.
Return investors in the round included Andreessen Horowitz, General Catalyst, Alphabet’s GV and Sequoia Capital.
Despite reports that investors are stockpiling capital, Stripe is one of the select few to have tapped a big sum of this hoarded cash.
After putting off an initial public offering (IPO) last year, Stripe then became a 2020 IPO candidate. Collison still refuses to put a date on the fintech going public, and with the uncertainty of the market this year due to coronavirus, it seems likely another year could go by without an IPO.
Because Stripe’s business rests on ecommerce enablement, the company is likely to be benefiting from the worldwide, prolonged lockdowns, unlike fellow fintechs such as Gravity Payments whose businesses relies heavily on transactions through the brick and mortar hospitality sector.
Stripe recently added Zoom as a customer, with existing customers such as website builder Squarespace, Deliveroo, Wish, Instacart and Amazon.
Collison said that since 1 March 2020, businesses joining Stripe’s platform have generated an eye-watering $1 billion in revenue already.
“This is digital migration in a very compressed period of time, for both businesses and customers,” says Collison.