Stripe’s value drops by almost half after raising $6.5 billion

US payments processor Stripe raised $6.5 billion on Wednesday in a funding round led by current and new investors, but the company’s value fell to $50 billion, down nearly 50% from two years ago .

The company said it will use the money to cover a large tax bill associated with employee stock grants and to provide cash to employees.

About $3.5 billion of the newly raised capital will be used for taxes and the rest will go to employee stock purchases, according to a source.

The latest funding marks a sharp decline in the valuation of the fintech, valued at $95 billion as of March 2021.

The company said it did not need the new funds to run its business. Venture capital firms including Andreessen Horowitz, Baillie Gifford, Founders Fund, General Catalyst, MSD Partners and Thrive Capital led the latest round of funding.

While Stripe still plans to go ahead with an initial public offering, it’s unlikely this year, the person said.

Stripe originally targeted approximately $4 billion in funding, but ended up attracting more investor demand than initially anticipated, the source adds.

New investors such as Singapore’s sovereign wealth fund GIC, Goldman Sachs Asset and Wealth Management and Temasek also participated in the round.

Stripe, which counts Amazon.com, Ford, Salesforce and BMW among its clients, has previously said it plans to become profitable before going public.

Source: Terra

Rose

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