Stripe raises $6.5bn in funding at reduced valuation of $50bn
US fintech giant Stripe has raised more than $6.5 billion from investors at a $50 billion valuation, a significant drop from the $95 billion valuation the company secured after its $600 million funding round in March 2021.
Stripe says it “does not need this capital to run its business” and the new funds will instead be used to pay current and former employees and address employee withholding tax obligations relating to equity awards.
Co-founder and president John Collison says the funding will give current and former employees the opportunity “to access the value they’ve helped create”.
Investors in this latest round include many existing shareholders such as Andreessen Horowitz, Baillie Gifford, Founders Fund, General Catalyst, MSD Partners and Thrive Capital.
A number of new investors will also stump up cash, including GIC, Goldman Sachs Asset and Wealth Management and Temasek.
The fintech darling says 100 businesses now handle more than $1 billion on Stripe every year, with 75% using Stripe for more than just payments and more than 70% using the fintech to manage operations across multiple countries.
“Stripe’s strategy is inherently indexed to secular trends that will only compound for decades to come,” John Kushner, founder and CEO of Thrive Capital, says.
Stripe says it benefits from the role it plays in “technology waves that reverberate across the industry”, such as mobile marketplaces and AI.
The firm recently partnered with OpenAI to integrate the its new natural language tech GPT-4 into its products and services.
Stripe will also help monetise OpenAI’s flagship product ChatGPT through powering payments and other fintech services.
OpenAI vice president or product and partnerships Peter Welinder says: “Beyond payments, Stripe is helping us with everything from recurring billing and tax compliance to automating our financial operations.”