Stripe sees an exit in the next 12 months • TechCrunch
Fintech startup Stripe has set a deadline of 12 months to go public, either through a direct IPO, or pursue a transaction on the private market, such as a fundraising campaign and a tender offer, according to sources familiar with the matter. The news, as first reported by The Wall Street Journalcomes as a surprise given the fairly dry public market activity in the tech world.
Stripe declined to comment on the record about the deadline or current revenue.
The payments giant was founded in 2010, so the fact that it’s exploring avenues to exit isn’t entirely surprising. Most recently publicly valued at $95 billion, Stripe has not been immune to the global downturn, however. In November, it temporarily laid off 14% of employees, or around 1,120 people. And the company has cut its internal valuation more than once in the past year. Earlier this month TechCrunch reported that Stripe had cut its internal valuation to 63 billion dollars. The cut of 11% came after an internal valuation cuts that occurred over six months previously, which valued the company at $74 billion.
According to the Journal, Stripe has hired Goldman Sachs and JP Morgan to help it evaluate what course of action makes the most sense for the company.
Founded in Ireland by brothers John and his brother Patrick Collison (Managing Director)Stripe last raised venture capital in March 2021 – a round of 600 million dollars which gave it the lofty valuation of $95 billion. That funding included support from two major insurance players. Allianz, via its Allianz X fund, and Axa participated in the round, along with Baillie Gifford, Fidelity Management & Research Company, Sequoia Capital and an investor from the founders’ home country, Ireland’s National Treasury Management Agency (NTMA).
Stripe reportedly had gross revenues of $12 billion and was EBITDA profitable in 2021, according to Forbes. The company’s products, in their own words, power payments for online and in-person retailers, subscription businesses, software platforms and marketplaces, “and everything in between.”
Late-stage tech companies have largely avoided public market debuts in the past year due to general volatility hammering stocks. Has Stripe missed its window to go public, or is it starting a trend that will be followed by other giants in the space? Guess that’s what it’s trying to figure out.
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