Stripe’s IPO is one of the most awaited debuts of 2021 by Wall Street. Stripe is the most valued fintech company in the United States. The company’s IPO may be bigger than Coinbase, Roblox and Instacart.
Stripe is an Irish-American company established in 2009 as a software as a service (SaaS) and financial services company.
The company has its headquarters in San Francisco, United States, as well as Dublin, Ireland. It mainly provides application programming interfaces (APIs) and payment processing software for mobile applications and e-commerce websites. It has 14 offices around the world.
Stripe was able to raise $2.2 billion with the help of 39 investors.
The company’s worth was $36 billion in April 2020.
There has been an increase of more than 160% in the company’s valuation since then. In a Series H round of funding, it raised $600 million in March 2021. With this round, the company’s valuation reached $95 billion.
Stripe has become a leading player in the fintech sector.
The company is growing at a rapid pace, and it shows no signs of slowing down yet. There is an enormous growth in online payment processing, especially because of the pandemic.
The company has a huge private market value.
The company’s worth has given it the status of the most precious private startup in the United States. Stripe is in a better position compared to Musk’s SpaceX and Instacart. Moreover, whenever Stripe plans to go public, it’ll be the biggest IPO ever.
On the global level, Strips holds the second position after China’s ByteDance in terms of a valuable unicorn with the latest valuation at $425 billion. However, the company has some expansion plans as well.
The company will use the capital from funding to:
- Make investments in European operations, especially in Ireland John Collison, the co-founder and president of the company, stated that the company would make more investments, especially in Ireland this year. The areas where the company will invest are mobility, fintech, retail, or SaaS. There are many opportunities for the European digital economy.
- To incentivize enterprise leadership Stripe is a big name in the enterprise section. Mike Clayville, Stripe’s Chief Revenue Officer, announced the company’s immediate plans to increase its revenue by adding enterprise potential and also global expansion to enhance market opportunities.
- Enhance its Global Payments and Treasury Network Stripe built a programmable infrastructure to help global money movement. The company named it Global Payments and Treasury Networks. Stripe wants to increase network software’s reach and service potential. Stripe will be soon launched in Thailand, UAE, India, Brazil, and Indonesia.
Stripe hired law firm Cleary Gottlieb Steen & Hamilton. This is Stripe’s first step to go public. The company has hired the law firm as a legal advisor for early-stage listing arrangements for an IPO. However, the company hasn’t decided the date. There is no chance of Stripe doing it this year.
The company wants to go public via a direct listing rather than a conventional IPO. There are no comments made by either Stripe or Cleary Gottlieb.