Stripe Inc. Valuation Nearly Doubles To $9.2 Billion
Stripe, Inc. is already the most valuable fintech startup in the world. And it just got richer. Now, Stripe has raised another $150 million round – at a $9.2 billion valuation. Why the massive (almost double) increase in value? Is Stripe really worth the cost?
Stripe, Inc. is already the most valuable fintech startup in the world. And it just got richer. The payment processing company was valued at $5 billion just a year and a half ago. Now, Stripe has raised another $150 million round – at a $9.2 billion valuation. Why the massive (almost double) increase in value? Is Stripe really worth the cost?
Stripe’s Valuation Has Gone Up, But Why?
Stripe, Inc., a digital payment processing company, just raised $150 million to fund their next expansion – with the company being valued at $9.2 billion. With so many other options for processing payments online, is the valuation accurate? Private investors sure seem to think so, as the round was led by Google parent company Alphabet and major VC firms such as General Catalyst and Sequoia Capital. What makes Stripe worthy of the massive increase in valuation? Put simply, the company has managed to become a household brand for businesses.
Stripe has quickly become a huge name in payments, with businesses such as Lyft and Instacart utilizing its services. Pinterest, Facebook, and Twitter all utilize Stripe’s technology for their “Buy Now” buttons. American Express, Docusign, Yelp, and even the NFL use Stripe as a payment processor. Developers are flocking to the company for its ease of use and ability to tie into any platform. According to Stripe, half of all internet users have purchased something through a Stripe-based seller within the last year. And with that sort of resume, Stripe is ready to compete head-to-head with PayPal.
Stripe’s goal is to expand into a full on financial services platform. To further that goal, the company will put the new round of funding towards international expansion, acquisitions, and more tools for its business customers. The payment company will ramp up hiring to create more developer tools and services to help entrepreneurs to run their businesses. And while the company has not hinted at what’s coming next, a safe bet would be more buyer and seller protection tools. Stripe came out with Radar, its fraud prevention tool, in October, and promised more safety tools to come.
Watch this video from Bloomberg Technologies to know more about Stripe:
Stripe has not specified to the public how many users it has or how much revenue it processes each year, but says clients span 110 companies. With an investor list and client list like Stripe currently has, the company has a bright future. Stripe’s valuation is absolutely worth the high number, and will only go up from here.
What Does Trump Want To Do With The Pending TPP Deal? Read the news here!
Follow us on Facebook and Twitter for more news updates!
The statements, views, and opinions of any article, contribution, editorial, or advertisement in this publication are not necessarily those of The Capitalist or its editorial staff, and are not considered an endorsement, sponsorship, or recommendation of any referenced product, service, issuer, or groups of issuers.
This publication provides general information about certain subjects, and should not be construed or taken as advice (legal, financial, investment, tax, or otherwise). Do not construe or take any information in this publication as a solicitation, offer, opinion, or recommendation to buy or sell any securities, bonds, or other financial instruments or to provide any legal, financial, investment, tax, or other advice or service about the suitability or profitability of any financial instruments or investments.
The Capitalist disclaims any liability for the accuracy of or your reliance on any statements, views, opinions, or information in this publication.