Stripe’s latest funding round values fintech giant at $50 billion
- ByStartupStory | March 16, 2023
On Wednesday, digital payments processor Stripe announced that it had raised $6.5 billion in its latest funding round from notable venture capital firms including Andreessen Horowitz, Founders Fund by Peter Thiel, and General Catalyst.
Despite being valued at $50 billion in this round, the fintech giant’s valuation had nearly halved compared to its previous fundraising. This drop in valuation comes amid a challenging economic climate.
Stripe raised $6.5 billion in funding, with participation from new investors like GIC, Goldman Sachs Asset and Wealth Management, and Temasek.
The recent capital raise by Stripe is considered a down round, meaning that the company’s latest funding round resulted in a lower valuation compared to its previous fundraising efforts.
During its last funding round in early 2021, Stripe was valued at $95 billion. The company’s clientele includes major companies such as Amazon.com Inc, Ford Motor Co, Salesforce, and BMW.
As the US Federal Reserve tightens its monetary policies, investors have become more cautious after years of investing significant amounts of money in ambitious startups, in an effort to reduce excess liquidity.
There is currently greater scrutiny on startup metrics like profitability and cash burn. This has led to a down round for Klarna, the Swedish buy now, pay later company, in the previous year.
According to the company, Stripe had intended to use the funds to pay a tax bill, and not as an essential requirement for its business operations.
Last month, according to reports, Stripe has been working towards achieving profitability before its public listing. However, it is unlikely that the company will launch its initial public offering this year.
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