New updates have been reported about Stripe (PC:STRPQ)
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Stripe, the digital payments giant, has initiated a tender offer allowing past and present employees to sell shares at a valuation of $91.5 billion, providing them with liquidity options. This move, confirmed by Stripe, involves the company repurchasing shares and sees participation primarily from existing investors. Notable past investors include General Catalyst, GV, and Silver Lake. This valuation marks an increase from the previous $70 billion valuation during the last secondary sale, although it remains below the $95 billion peak achieved in 2021 amid the e-commerce surge driven by the COVID-19 pandemic.
In its annual letter, CEO Patrick Collison highlighted a 38% increase in payment volume, reaching $1.4 trillion in 2024, showcasing significant growth. However, when compared to Visa’s $13.2 trillion payment volume, Stripe’s margins remain slim, indicating the need for further scaling. The company has also expanded its reach, now serving half of the Fortune 100 companies, reflecting its evolution from a startup-focused entity to a major player in the enterprise sector. This tender offer, initially reported earlier this month, underscores Stripe’s strategic efforts to balance employee incentives with its broader growth ambitions.