Thrive Capital, a New York-based firm, has reportedly committed fresh funding of $1 billion dollars to Stripe, as part of a new investment that could value the payment technology company at $50 billion.
According to a report by The Information in January, Stripe held talks to raise $3 billion from its existing set of investors in a latest fundraise that is expected to value the payments startup between $55 billion and $60 billion.
It is believed that Thrive Capital, an existing investor in Stripe would be leading this new investment in the company, however, this report remains unconfirmed by both companies. Thrive Capital led the company’s $70 million Series C in 2014 when it was valued at $3.5 billion.
This new investment comes in the backdrop of the company weighing options between a public listing and a private market capital raise. According to Techcrunch, Stripe had set a 12-month deadline for itself to go public, either through a direct listing or by pursuing a transaction on the private market.
The fundraising also follows a challenging economic period witnessed by the digital payments firm company in 2022. Previously valued at $95 billion in 2021, Stripe has slashed its internal valuation at least three times over the last 6 months marking a cumulative 40% valuation loss.
Founded in 2010 by Irish brothers John and Patrick Collison (the CEO), Stripe has raised more than $2.2 billion in funding from investors such as Allianz (via its Allianz X fund), Axa, Baillie Gifford, Fidelity Management & Research Company, Sequoia Capital, General Catalyst, Base Partners and many more.