Payments

Stripe investors increase stakes in payments giant

Investors are increasing their stakes in Stripe ahead of its public listing, the Wall Street Journal reported citing sources.

The bids for the payments giant from investors surpassed $4 billion but only $1 billion were sold, the sources told the news outlet. Some of the largest buyers include Sequoia Capital, fintech ecommerce company Shopify, Silver Lake and Capital Group Cos. Notably, Shopify, one of the world’s largest e-commerce platforms, has invested $350 million in the payments giant.

Stripe raised a colossal $600 million funding round in March that ramped up its valuation to $95 billion. The company’s latest funding round made it the most valuable private company in Silicon Valley, the Wall Street Journal reported. Stripe was valued at $36 billion in a $600 million funding round completed in April 2020, according to CNBC. In September of 2019, Stripe raised $250 million at a $35B pre-money valuation.

The bid was settled in May and was sold at a price around when Stripe sold shares in March, the Wall Street Journal reported citing some of the people familiar with the transaction.

Stripe has been known over the years for building out “payments infrastructure for the internet.” Millions of companies of all sizes — from startups to Fortune 500s — already use Stripe’s software and APIs to accept online payments, send payouts, and manage their businesses online.

FinLedger has also written a a deep dive into Stripe’s business model based on CB Insights research which looks at how the company’s “developer-first approach” set itself apart and explores how it came to be the fintech rockstar that it is today.

In other recent fintech news, Adyen, a Dutch company, has officially announced that it obtained its US branch license. The Federal Reserve approved its application on May 24, 2021.

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