Stripe plans new share sale for US$85b valuation
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The news: Stripe is considering an employee-share sale that would value the company at USD85 billion ($135.40 billion) or more, The Information reported citing an unnamed source, helping lift the payment fintech’s valuation closer to its 2021 peak.
The context: The plans follow a series of share buybacks, secondary sales and fundraises that have helped the payments provider recover from its USD50 billion valuation in March 2023, when higher interest rates slowed e-commerce growth.
Investor sentiment toward private fintech startups has improved as the Federal Reserve has begun cutting interest rates.
The numbers: The size of the sale is not known.
The new valuation would be at least 20% higher than an employee-share sale arranged in 2024, helping lift Stripe’s valuation closer to its 2021 peak of USD95 billion.
Stripe’s valuation has also been rebounding as revenue growth recovers, with about USD615 million in free cash flow in the quarter ending June 2024.
Stripe declined to comment to The Information.
The source: The Information
