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Stripe Valuation surges to USD 95 billion After Fundraising worth USD 600 million

Stripe closes $600M round at a $95B valuation - Appy Pie

A Digital-payments company, Stripe said that it has recently closed a USD 600 million funding round that now leads to the valuation of the company at USD 95 billion which is more than double of its valuation a year ago.

Stripe made it clear by saying, “We would use money from the funding to expand our operations in Europe especially our co-headquarters in Dublin, and support surging demand from enterprise heavyweights across Europe, and also beef up its Global Payments and Treasury Network.” Thirty-one of the 42 countries where Stripe operates are in Europe.

Stripe co-founder and President John Collison said, “We are investing a huge sum in Europe this year, particularly in Ireland. Whether in fintech, mobility, SaaS, or retail, the growth opportunity for the European digital economy is vast.”

Last month, Barron’s reported Stripe was seeking additional financing, with a valuation goal of around USD 100 billion.

Last April, Stripe received roughly USD 600 million in financing at a valuation of USD 36 billion.

Stripe with dual headquarters in San Francisco had raised about USD 1.6 billion in 14 funding rounds before the announcement.

Stripe said that the latest funding included backing from two major insurance players. Allianz, with Allianz X fund, and Axa are leading the round, along with Baillie Gifford, Sequoia Capital, Fidelity Management & Research Company, and Ireland’s National Treasury Management Agency (NTMA).

Stripe is one of the largest companies and is a recurring candidate for a huge initial public offering.

Conor O’Kelly, CEO of NTMA said in a statement, “Stripe is a stimulator of global economic growth and a leader in sustainable finance. Despite the progress Stripe made over the last 10 years, most of the success is yet to come. We are delighted to back Ireland’s and Europe’s most prominent success story.”

The rising valuation and growing cap will certainly lead to questions around where the company is standing, and whether it will include a public listing. Stripe has long kept its cards under the table when it comes to user numbers, revenues, and profit and those details have not been disclosed even this time. Moreover, the company has not even made any comments on IPO plans yet.

Notably, the confirmation of the news today is at a lower valuation than the valuation Stripe was reportedly trading at on the secondary market, which was USD 115 billion; and the round that closed at a USD 95 billion valuation was also rumored to be coming in at a higher number, over USD 100 billion.

It’s not clear whether those numbers were accurate, or if Covid-19 influenced the pricing, or if European investors simply drove the bargain.

Stripe, a payment processing software startup was founded in 2010 by John and his brother Patrick Collison. Stripe works at building a simple way for developers to integrate payments into any app or website by way of a few lines of code, at a time when digital payments were just taking off.

The company has always worked hard on integrating complex steps needed to make payments in a country and across borders. Over the years, the company has built out a bigger platform to position itself as a one-stop-shop not just for helping businesses run all of the commercial aspects of their operations like managing fraud and cashflow.

Stripe has developed a decent footprint in Europe, with the region comprising 31 out of 42 countries with its customers. Even though Stripe started by providing payments infrastructure for startups, today that list includes big companies as its customers including Axel Springer, Mountain Warehouse and Waitrose, Jaguar Land Rover, Maersk, Metro, Deliveroo (UK), Glofox (Ireland), Doctolib (France), Klarna (Sweden), ManoMano (France), N26 (Germany), UiPath (Romania) and Vinted (Lithuania).

Even though Stripe still thinks there is a huge opportunity for more growth. Stripe says that in the wake of Covid-19 and the rise of people shopping considerably more across the web and apps rather than in person, currently, some 14 percent of business happens online, a big shift from a year ago when it was about 10 percent.

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