Stripe Inc. climbed closer to the top levels of the highest-priced US startups after a new fundraising round valued the financial technology company at $ 35 billion.
Venture capital firms Sequoia Capital, General Catalyst and Andreessen Horowitz were among the investors behind the $ 250 million investment, the company said Thursday. The $ 35 billion valuation, up about 50% from a funding round in early 2019, puts Silicon Valley's Darling Airbnb Inc. and Palantir Technologies Inc.
Stripe's technology allows online businesses and online marketplaces to accept credit cards for their goods and services and pay out money to people and companies selling on their platforms. It processes hundreds of billions of dollars in payments annually for millions of users, including consumer apps and websites like Airbnb and
and manufacturers of business software such as GitHub Inc. and
Investors look to payment companies like Stripe as a way to get exposure to a basket of fast-growing public and private technology companies, since Stripe's revenue is linked to customer growth. The payment services market is also expanding as more trade moves away from physical stores and towards digital retail factories.
"Stripe is more than ever a game on the internet as an economic engine," said Will Gaybrick, Stripe's chief product officer.
Stripe was founded in 201
said it had no plans to go public. It has raised around $ 1.2 billion over the past nine years.
Still, a number of younger startups, such as Checkout.com, are raising hundreds of millions of dollars in venture capital to challenge Stripe. Traditional payment processors, meanwhile, are selling to major financial institutions in an effort to pool their offerings with digital payments.
Some of these companies have been successful in picking up business from Stripe's customers. Dutch payment company
During the summer, NV said it began processing some payments for delivery company Postmates Inc., a longtime Stripe user.
one of Stripe's biggest customers, revealed in the IPO prospectus that it added an extra payment processor last year and can make its own payment products in an effort to lower costs.
Mr. Gaybrick said the vast majority of users rely on Stripe to handle all of their payments, adding more countries to the network to help businesses grow internationally. At a conference last week, Stripe announced that it was available in eight new European markets.
Stripe also uses the data it collects from the payments it processes to expand its financial services. Earlier this month, it announced that they would begin issuing repayment credit cards and lend money to businesses processing payments through Stripe, using signals such as the percentage of sales coming from repeat customers to determine creditworthiness.
Write to Peter Rudegeair at Peter.Rudegeair@wsj.com
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