Fintech firm Stripe is reportedly planning an investment round so that its payment platform and business can be valued significantly higher than the $36 billion valuation it received during its last funding round.
According to Bloomberg (which cited sources familiar with the matter), Stripe could potentially be valued at around $70 billion or even up $100 billion, after the planned round.
If Stripe manages to reach a $100 billion valuation, then it would make the Fintech company one of the most valuable VC-backed businesses in the US and globally.
Stripe‘s software solutions are used by major businesses in order to accept payments. The firm competes in certain areas with companies like PayPal and Square. Stripe claims that it has benefited from the COVID-19 pandemic because many more businesses and consumers are conducting transactions via e-commerce platforms. This has led to significantly increased demand for digital payments that are facilitated by companies like Stripe.
Stripe appears to have taken advantage of the increased usage of digital commerce sites. The company has been offering its own card-issuing service for US customers. Stripe also continues to expand its operations with its acquisition (announced in October 2020) of Nigerian Fintech Paystack which will continue to operate independently.
Stripe has also been focused on acquiring additional capital this year. The company finalized a $600 million investment round back in April 2020 with contributions from Andreessen Horowitz and Sequoia Capital. Stripe’s business was valued at $36 billion after its latest round. General Catalyst, Founders Fund and Khosla Ventures also took part in the firm’s most recent round.
Stripe was established in 2010 by Irish citizens and brothers John and Patrick Collison, who notably sold their first business for $5 million when they were only teenagers. Both Stripe founders are worth about $4 billion each, according to the Bloomberg Billionaire Index.
Collison told PYMNTS that the digital payments space can always improve how it operates with 96% of marketplace and payments professionals noting that sales conversion rates between website visits and consumers purchasing items may be further improved.
As reported earlier this month, Stripe will move its operations to Dublin due to Brexit. Most European customers will be processed locally (beginning on November 19, 2020).
Stripe’s management confirmed that they’re moving payment processing for most of their European clients to the firm’s Irish-regulated business entity because of issues related to Brexit.
The online payments firm stated that processing for all clients based outside of the UK and Switzerland will be handled by Dublin-headquartered Stripe Technology Europe Ltd. These transactions will be processed by Stripe Payments UK Ltd.