Stripe Valuation: Finalizes Tender Sale at $91.5B - 2024 Update

Stripe Offers Liquidity to Employees Through Tender Offer

Despite not yet announcing intentions for an initial public offering (IPO), Stripe is providing a liquidity opportunity for its current and former workforce. The company has confirmed a tender offer, allowing investors to purchase shares from employees at a valuation of $91.5 billion.

In addition to the investor purchases, Stripe will also be repurchasing shares as part of this financial transaction.

Investor Details Remain Largely Undisclosed

A company spokesperson indicated that the secondary round is primarily being funded by existing investors, but declined to provide a comprehensive list. Data from PitchBook reveals that Stripe has secured backing from over 150 investors throughout its history.

Notable investors include firms like General Catalyst, GV, Silver Lake, and Atomico, as well as prominent individuals such as Elon Musk and Salesforce.

Valuation Trends and Growth

This tender offer represents an increase in the company’s valuation compared to its last secondary sale a year prior, which was valued at $70 billion. However, it remains below the peak valuation of $95 billion achieved in 2021.

The 2021 valuation was attained during a period of significant e-commerce expansion fueled by the COVID-19 pandemic, briefly establishing Stripe as the most highly valued private tech company globally.

Record Payment Volume and Enterprise Adoption

The announcement aligns with the release of Stripe’s annual letter from CEO and co-founder Patrick Collison. The letter highlighted a substantial increase in payment volume, reaching $1.4 trillion in 2024.

This represents a 38% growth rate compared to the previous year.

While a significant figure, Stripe’s payment volume is smaller than that of established players like Visa, which reported $13.2 trillion in payment volume for 2024.

Scaling for Profitability

Stripe’s profit margins on transactions remain relatively narrow. Therefore, continued scaling of the business is crucial for sustained profitability and growth.

The company also announced that it now serves half of the companies listed on the Fortune 100. This demonstrates Stripe’s evolution from a startup focused on supporting other startups to a key provider for large enterprises.

Reports regarding the tender offer initially surfaced earlier this month.