Beacon Transcript – The fintech firm Stripe Inc. will be increasing its worth and surpass a $9 billion value after the company will be ending its latest funding round.
Stripe is an American company founded in 2010 by two Irish brothers after they finalized their studies in the United States. The technology company’s main objective is to provide a safer online payment system by providing the necessary technical and banking software so as to prevent fraud.
Stripe was quick to grow as its software is reportedly being used in more than 100 countries across the globe.
The Stripe platform allows its users to both accept and track their digital payments and has been a hit with start-up companies the likes of Kickstarter.
As the fintech firm keeps growing, it has also been attracting larger companies as big names such as Macy’s or Adidas have started using their software.
The company is expected to continue growing as its latest funding round will be almost doubling its current value.
Stripe, that first went public in 2015, is at its second funding round. In July 2015, the firm hosted its first such round which brought the company to a $5 billion value.
As their share value has remained at a stable number over the past year, since its 2015 May peak, company shares saw an increase following the Friday announcement.
Stripe announced that its second round of funding had succeeded in raising an approximated $150 million in cash.
With the new investments, the company will probably come to a $9.2 billion final value, almost doubling its current price.
Stripe had already been valued at a higher price than other similar fintech start-ups the likes of Betterment Inc. or Social Finance Inc.
CapitalG is the co-leader of the new Stripe funding round. CapitalG, which is just one of the Alphabet Inc. investing arms, was joined by General Catalyst Partners, one of the first companies to invest in Stripe.
The fintech firm also stated that it has received a separate banks credit lines from Goldman Sachs Group Inc., J.P. Morgan Chase & Co., Barclays PLC, and Morgan Stanley.
After the latest funding round, the company is expected to be almost doubling its market value and to have raised an estimated $460 million.
Will Gaybrick, the Stripe Chief Financial Officer, has revealed some of the company’s plans following the latest funding.
Gaybrick stated that the firm will be investing the such raised money so as to help its international expansion.
It will also be looking to acquire new companies and perhaps more user relevant, it will be building and developing new tools for its customers.
Earlier this year, Stripe launched its services in several new markets including France, Spain, Japan, and Singapore. It has also bought three smaller companies.
The new funding round will help Stripe continue its development plan as it will also mark the company’s place as one of the United States’ biggest technology companies.
Image Source: Wikimedia