Payments Processor Stripe Harbors IPO Ambitions

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  • Stripe Inc co-founders Patrick and John Collison internally shared their goal of either taking the company public or allowing employees to sell shares in a private-market transaction within the next 12 months.
  • Stripe hired Goldman Sachs Group, Inc GS and JP Morgan Chase & Co JPM for advice, the Wall Street Journal reports.
  • Stripe is a payments processor to internet companies like Shopify Inc SHOP and Instacart Inc.
  • Stripe's last fundraising nearly two years ago valued the company at $95 billion. 
  • Recently, Stripe approached investors, including Berkshire Hathaway Inc (NYSE: BRK-B), about raising at least $2 billion at a valuation of $55 billion - $60 billion.
  • Stripe laid off 14% of its workforce in November. The Collison brothers admitted overestimating the internet economy's near-term prospects. 
  • A pandemic-fueled boom in e-commerce led to Stripe recording annual revenue increasing nearly 70% to about $7.4 billion in 2020.
  • However, 2021 appeared more challenging as consumers returned to in-store shopping and changed their spending patterns in the face of high inflation.
  • Last July, Stripe cut its internal share price to price stock options given to employees to $29 from $40, lowering the company's valuation to $74 billion. 
  • Stripe recently cut the value of those shares again to $25, giving the company a valuation of $63 billion.
  • In 2022, Stripe decided to offer customers access to Bitcoin four years after suspending support for the cryptocurrency, taking a cue from rivals.
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