By
Steve Muchoki
February 9th, 2024
Stripe plans to use the funds to expand its European headquarters business and its general businesses in Europe as well.
Financial services company Stripe has recorded $95 billion in its valuation after raising $600 million in a recently-concluded funding round. Now, the payments company has become the most valuable startup in the US after previously valued at $35 billion.
Stripe New Valuation after Funding Round
Stripe announced its new secured funds on the 14th of March. The Irish-American financial services provider named Sequoia Capital and Fidelity Management and Research Company as participants in the funding round. Others that contributed to the increased valuation are Ireland’s National Treasury Management Agency (NTMA) and Baillie Gifford.
As stated in a report by TechCrunch, Stripe plans to use the funds to expand its European headquarters business and its general businesses in Europe as well. Before now, Peter Barron, the former EMEA vice president for Google LLC (NASDAQ: GOOGL) and a former journalist, announced that he would be joining Stripe to head its Communications unit.
The payments company also aims to use the money to support its global payments and treasury network.
Stripe president and co-founder John Collison said in a statement:
“We’re investing a ton more in Europe this year, particularly in Ireland. Whether in fintech, mobility, retail, or SaaS, the growth opportunity for the European digital economy is immense.”
Specifically, the report noted two major backers of the funding round. They are Allianz and Axa.
The CEO of NTMA, Conor O’Kelly, also commented on the recent development. He said:
“Stripe is an accelerator of global economic growth and a leader in sustainable finance. We are convinced that, despite making great progress over the past 10 years, most of Stripe’s success is yet to come. We’re delighted to back Ireland’s and Europe’s most prominent success story, and, in doing so, to help millions of other ambitious companies become more competitive in the global economy.”
Stripe Sees Growth Due to Increased Online Shopping
Since its inception in 2010, Stripe has grown and expanded across 31 countries in Europe. In total, the company has customers in 42 countries. Some of its European clients include food delivery company Deliveroo in the UK, Jaguar Land Rover, Glofox (Ireland), Vinted (Lithuania), N26 (Germany), Klarna (Sweden), Axel Springer.
Stripe processes hundreds of billions of dollars in yearly payments across the 42 countries it offers services. The company has been recording gains due to increased online shopping since the beginning of the coronavirus pandemic, which led to a global lockdown. Stripe customers, including DoorDash Inc, Shopify Inc, and Wayfair Inc saw a surge in demand as people shift to focus on online shopping.
Stripe has always been discreet with its revenues, profits, and other financial details. Expectedly, the company did not mention its finances while talking about the recent funding round, as noted in the TechCrunch report. Also, Stripe has not made any comments on its IPO plans.