Stripe Sold Shares for $1 billion

Stripe Sold Shares for $1 Billion

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It so happened that I haven't mentioned Stripe yet. This is the richest fintech startup on the Silicone Valley. But the time has come. The company is getting ready to become public though it doesn't rush at announcing the exact date of the IPO. It seems like it's trying to keep analysts, investors, and journalists interested.

This latter ones made it known that the startup had sold its shares for $1 billion. Let's find out who was the buyer and what the company will spend the money on.

Stripe shares: more details of the trade

On June 14th, the Wall Street Journal announced that the American fintech company Stripe that develops solutions for receiving and processing e-commerce electronic payments, sold its shares for a serious sum.

The information sources of the journal claim that the sum of the trade amounted to $1 billion. Among the buyers were Silver Lake and Capital Group companies, the Shopify e-commerce platform and Sequoia Capital venture trust. Note that these companies had already been the investors of the payment service, and with this purchase they increased their shares in the startup.

The WSJ claims that the collected money will be allocated for expanding their business in Europe and entering the markets of India, Brazil, and Indonesia.

Main facts on Stripe

  • The company was based in 2009 in Palo Alto by John Collison and Patrick Collison.
  • In 2011, the company attracted $2 million investments.
  • Its main business is providing Internet shops with API for receiving and processing online payments on websites and in apps.
  • Moreover, the startup develops solutions against fraud in e-commerce and optimization products for online business.
  • According to an investment and research platform MoffettNathanson, in 2019 the sum of transactions processed by Stripe solutions reached $200-250 billion. A year later, this result almost doubled.
  • In September 2019, Sequoia Capital, General Catalyst, and Andreessen Horowitz invested $250 million; the company was evaluated as $35 billion.
  • In April 2020, the company attracted $600 million investments from Sequoia Capital, General Catalyst, and Andreessen Horowitz, which increased its evaluation to $36 billion.
  • In March this year, the company got $600 million more from Ireland's National Treasury Management Agency, Allianz, AXA, Baillie Gifford, Fidelity, and Sequoia Capital. This raised its capitalization to $95 billion.
  • According to the WSJ, Stripe plans an IPO for the end of 2021 or the beginning of 2022.

Summing up

The richest fintech startup of the Silicone Valley Stripe sold its shares to Silver Lake, Capital Group, Shopify, and Sequoia Capital for $1 billion. Before that, the company had been evaluated as $95 billion. The money will be spent on the development in the European market and entering Brazil, India, and Indonesia.

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