News: Stripe’s value hits $95 billion after payment giant’s latest fundraising.
DUBLIN (Reuters) – Digital payments giant Stripe rose to $ 95 billion in value after capitalizing on an e-commerce boom with a funding round that pulled it past Elon Musk’s SpaceX as the most valuable U.S. startup.
Stripe was founded by Patrick and John Collison in 2010 when the Irish brothers were not teenagers. It is used by more than 50 companies, each processing over $ 1 billion a year, to receive payments and bill customers.
Customers include Google, Uber and Amazon and, more recently, the giants Maersk and Jaguar Land Rover.
Participants in the recent $ 600 million funding for the San Francisco and Dublin-headquartered company include shares in Allianz SE, AXA SA, Baillie Gifford, Fidelity Management & Research Co., of Sequoia Capital and the Irish sovereign wealth fund.
The company announced that it will use the capital to invest in its European operations, which cover 31 of the 42 countries Stripe operates in, and to expand its global payments and treasury network.
At $ 95 billion, Stripe is now more valuable than any bank in the euro zone.
“The pandemic taught us many things about society, including how much can be achieved and paid for online,” Dhivya Suryadevara, Stripe’s chief financial officer, said in a statement.
“With Stripe processing hundreds of billions of dollars a year for millions of companies around the world, the odds are much greater … than it was 10 years ago when the company was founded.”
Suryadevara joined General Motors Co last year where she was one of the youngest and most senior executives in the industry. Stripe also added former UK and Canadian central bank chief Mark Carney to its board last month.
One of the other supporters of the financing announced on Sunday, the digital investment unit Allianz X of the German insurer Allianz, said it sees “amazing growth potential” in Stripe.
As part of the $ 50 million invested by Ireland Strategic Investment Fund, the country’s sovereign wealth fund, Stripe will create more than 1,000 jobs in the Collison brothers’ home country over the next five years.
From Limerick, southwest Ireland, the Collisons sold their first store for $ 5 million while the younger of the two, John, was still in school.
The couple left Limerick to study at Harvard University and the Massachusetts Institute of Technologywhere they founded Stripe.
While Stripe topped the $ 74 billion rocket company SpaceX valued last month in raising $ 850 million in equity, TikTok owner ByteDance is valued at around $ 180 billion.
Additional coverage by Scott DiSavino in New York, Radhika Anilkumar in Bengaluru and Sujata Rao in London; Editing by Peter Cooney and Jason Neely
Original Source © Reuters