Payments Processor Stripe Harbors IPO Ambitions

Author: Anusuya Lahiri | January 27, 2023 08:50am

• 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 (NYSE:GS) and JP Morgan Chase & Co (NYSE:JPM) for advice, the Wall Street Journal reports.
• Stripe is a payments processor to internet companies like Shopify Inc (NYSE: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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