Digital payment service Stripe announced it has secured $600 million as part of the Series G round it closed in 2019. Thanks to investments from Andreessen Horowitz, General Catalyst, GV, and Sequoia Capital, the firm’s valuation now stands at $36 billion. Although the company is thriving despite COVID-19’s impact, its leaders have no initial public offering (IPO) plans.
Stripe’s Remarkable 10 Year Journey
Founded in 2010, the San Francisco-based Stripe began its life after receiving seed funding from Silicon Valley accelerator Y Combinator. The company offers merchants the digital infrastructure and fraud prevention resources they need to accept online payments. Two years later, the firm generated enough buzz to receive $18 million in Series A led by Sequoia that valued it at $100 million.
In the last ten years, Stripe has scored $1.633 billion in outside investments and has significantly upscaled its operations. The company now operates engineering centers in California, Washington, Ireland, and Singapore, and has acquired eight other startups. Moreover, the company has expanded its services and now offers a point-of-sale solution, incorporation services, and credit card issuance.
The startup has also established an impressive client list, including DoorDash, Mattel, NBC, Warby Parker, Target, DocuSign, Lyft, and UNICEF.
Because of its latest capital injection, Stripe is now one of the highest-valued startups in America, and unlike many of its cohorts, the coronavirus pandemic is helping it grow.
Stripe’s Robust Outlook
In the press release announcing its $600 million investment, Stripe discussed how COVID-19 has impacted its business. The firm noted it experienced an increase in companies signing up for its services since the beginning of the year. The startup also admitted managing the surge is challenging, stating “years of offline-to-online migration are being compressed into several weeks.”
As a multifaceted contactless payment provider, it makes sense that the firm’s service has been in demand.
Stripe revealed it has processed over $1 billion in transactions for companies it signed up since the coronavirus pandemic came to the United States. The company also named videoconferencing firm Zoom as one of its new clients, which shows it has no problem taking on high volume customers. Besides, the startup declared it has $2 billion on its balance sheet to ensure continuity of service and steady expansion.
Despite its excellent financial picture and remarkable growth, its founders told Axios their firm is not going public “anytime soon.” The company leadership held the same position in 2019 when it received a $35 billion valuation. As several hugely promising startups encountered severe problems after launching their IPOs, Stripe’s decision to remain private seems wise.
TechCrunch reports Stripe will use its new $600 million investment on product development, strategic initiatives, and global expansion. Given the company’s past success and capacity to deal with crises, it should be able to maximize its new funding. In fact, with the coronavirus pandemic still ongoing, the startup could enter the global recovery as one of the world’s leading fintech brands.