Stripe, a payments and cash management platform used widely around the world, says it will extend an offer to shareholders to purchase stock at a valuation of $91.5 Billion or €87.3 billion.
Stripe noted that it is profitable and anticipates this will continue going forward.
Strip, which has two headquarters – one in SF and the other in Dublin, will provide a level of liquidity for employees or former employees, thus allowing an exit opportunity for these stakeholders. Typically, an exit is enabled by an initial public offering (IPO) or acquisition – a path Stripe has foregone – most likely due to onerous regulations and high cost to become a public firm. Stripe said it would be repurchasing shares along with other investors.
In 2024, Stripe generated a whopping $1.4 trillion in payment volume, an increase of 38% over year prior. The company notes this is equal to about 1.3% of global GDP – highlighting the systemic importance of their service.
In their annual letter, Stripe provided insight into operations and expectations going forward, along with some concerns regarding the European market.
Stripe shared that it has invested in artificial intelligence (AI) models helping to improve revenue for its customers. The company said the “AI boom is happening on Stripe,” helping to fuel its growth. Over 700 AI agent startups launched on Stripe last year. The company said they are “retraining dozens of machine learning models that optimize every part of the transaction flow.” AI firms are building at a record pace, predicting a shift that may go vertical as artificial intelligence becomes ubiquitous.
Stripe is also involved in crypto.
The company highlighted its stablecoin strategy, reporting that volume has surged.
Stablecoins are primarily utilized for on/off ramp for crypto trading today but digital currency is poised to become the new payment rails globally. Recently, Stripe acquired stablecoin infrastructure firm Bridge to help fuel growth in this sector.
The rise of vertical SaaS for smaller businesses is also driving Stripe’s growth. In the US, 6.3% of smaller firms powered by vertical SaaS platforms on Stripe earn $1 million in total revenue in their first year. Vertical SaaS, paired with Stripe Capital, can leverage a relationship to provide credit automatically, benefiting from merchant data.
On a negative note, Strip shared that Europe continues to fall behind as the business climate is not suitable for incentivizing startups and entrepreneurs. Stripe pointed to the Draghi Report, which said Europe was an existential challenge as the US performed better and the EU stalled. “Europe clearly needs major regulatory reform and simplification.”
The Draghi Report:
The future of European competitiveness – Part A
The future of European competitiveness – Part B