Fintech Stripe Scores Blockbuster $95 Billion Valuation
By Peter Rudegeair
A fresh fundraising round for Stripe Inc. has made the
financial-tech company one of the world's most-valuable
Stripe said on Sunday that it raised $600 million from a group
of investors that included Ireland's National Treasury Management
Agency, insurers Allianz SE and AXA SA and investment managers
Baillie Gifford & Co. and Fidelity Investments. The round
valued Stripe at $95 billion, more than 2 1/2 times the valuation
it attained in a 2019 fundraising round.
Thanks to the new fundraising, Stripe is now worth more than
other startup darlings like Instacart Inc. Globally, it still
trails the Chinese fintech giant Ant Group Co. in terms of
As a payment processor to startups and fast-growing internet
companies, Stripe benefited from the pandemic-induced boom in
online shopping. Stripe customers including DoorDash Inc., Shopify
Inc. and Wayfair Inc. all experienced a surge in demand as
consumers shifted their spending away from bricks-and-mortar
"We're bigger now than the entire e-commerce [market] was when
we first started Stripe," Dhivya Suryadevara, Stripe's chief
financial officer, said in an interview. Stripe launched in
In the pandemic, some small businesses were unhappy with steps
Stripe and other payment processors took to protect themselves from
possible losses. The maneuvers, including sometimes making the
businesses wait extra days or even months to access money deposited
in their accounts, intensified a cash crunch at many firms.
Stripe doesn't disclose its payment volumes or financial
results. The company said in a release that it processes payments
worth hundreds of billions of dollars a year for millions of
businesses world-wide and that it counts as customers more than 50
companies that each use Stripe to process more than $1 billion
Beyond payments, Stripe has been adding more financial services
to the products it offers customers. In December, Stripe announced
it was teaming up with banks including Goldman Sachs Group Inc. and
Citigroup Inc. to offer checking accounts and other
business-banking services to merchants.
Investors have long viewed Stripe and other payments companies
as a way to get exposure to a range of fast-growing industries.
More recently, though, some have started to wonder if the
Covid-fueled run-up in tech stocks is overdone, and they are
starting to rotate out of popular tech companies and into
established industries like banks and industrials.
With the new funding, Stripe plans to bulk up 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 its home in California, Stripe has stepped into the
political-speech fray that other tech giants are wading through.
After the pro-Trump riots at the Capitol in January, it stopped
processing payments for President Trump's fundraising
Write to Peter Rudegeair at Peter.Rudegeair@wsj.com
(END) Dow Jones Newswires
March 14, 2021 19:21 ET (23:21 GMT)
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