Stripe Wants To Delay Its IPO

At the start of the year, analysts expected Stripe, the online payment processing service provider, to go public. Stripe, however, had denied any such plans despite continuing to add to its leadership portfolio. Given the current conditions though, that IPO listing may not be happening soon.

Stripe’s Financials

San Francisco-based Stripe was set up in 2010 by brothers John and Patrick Collison who wanted to set up an online platform to simplify the process of accepting payments for websites and apps. Stripe allows companies to set up credit card processing capabilities on their digital pages by just embedding a simple code.

Stripe earns revenues by charging a fee on the transactions conducted through its platform. It charges a rate of 2.9% of the transaction value plus a commission of $0.30 per transaction. Being privately held, it does not disclose its financials. Recent reports estimate its revenues at $512.4 billion.

Stripe is venture funded so far and has raised $1.6 billion in thirteen rounds from investors including Capital G, Visa, Thrive Capital, Khosla Ventures, Founders Fund, General Catalyst Partners, Sequoia Capital, Allen & Company, Y Combinator, SV Angel, Aaron Levie, Chris Dixon, Elad Gil, Peter Thiel, Elon Musk, and Andreessen Horowitz. Its last round of funding was held in April this year, when it raised $600 million at a valuation of $35 billion. The round was led by Andreessen Horowitz, General Catalyst, Alphabet’s GV, and Sequoia Capital. Stripe’s valuation has seen a steady increase. In 2016, it had raised $150 million at a valuation of $9.2 billion. Prior to that, a July 2015 round had valued it at $5 billion.

Stripe’s Growing Partnerships

Stripe has been expanding its market presence within the enterprise segment through partnerships with other tech giants. Recently, it announced a new partnership with Salesforce. As part of the agreement, Stripe will process payments for Salesforce’s new commerce service called Digital 360. Large Salesforce customers using Digital 360 will have the option to set up their payments-processing for e-commerce through Stripe. Stripe has been focused on attracting larger enterprises and now has an estimated 40 companies processing more than $1 billion in payments over its platform annually.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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William K. 4 weeks ago Member's comment

With such a success story why would a company want to go public? The need is not obvious to me, at least. A privately held company can avoid the rules and restrictions placed on publicly traded companies, which I would consider a benefit.