Stripe eyes an exit over the next 12 months
Payment processing company Stripe aims to go public within a year, using either a direct listing or private market transaction. Sources familiar with the matter revealed that the start-up is exploring its options with Goldman Sachs and JPMorgan. Stripe has suffered from the economic downturn, with its internal valuation cut 11% to $63bn earlier this month. It previously underwent a cut to $74bn. Stripe last raised $600m in March 2021, valuing it at $95bn.
Stripe’s products power payments for online and physical retailers, subscription businesses, software platforms, and marketplaces. The firm’s co-founders, Patrick and John Collison, established the company in 2010. In November, the company laid off around 14% of its staff, equating to roughly 1,120 employees. Stripe reportedly posted $12bn in gross revenues and became EBITDA profitable in 2021. The payments company is one of the highest-valued private start-ups globally.
Other tech companies have postponed going public in the past year due to the general volatility hammering stocks. Stripe’s possible move to go public within a year could initiate a trend followed by other late-stage tech companies. Stripe has yet to comment on its revenue or deadline for going public.
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