Stripe is a leading online payment processing platform. It is one of the most valuable private US companies. Its APIs allow businesses to send and receive payments as well as manage their operations online. Stripe offers low-code and no-code integrations to simply the payments process and automate workflows.
The company has over 1,000 company customers and processes over $1 billion in payments through the platform. Noteworthy Stripe customers are Slack, Zapier, Instacart, Google, Shopify and Amazon.
Stripe has acquired Kickoff, Index, Paystack, OpenChannel, Payable, TouchTech, TaxJar, BBPOS, and Recko.
Although Stripe is a major private payments company it faces steep competition. Other private payments companies include RazorPay, Revolut, Chime, and Bolt Financial. Paypal and Square are payment giants that have already IPOed.
A potential Stripe IPO has been a much awaited event for the last years. As of now, Stripe has not filed a Form S-1 with the Securities and Exchange Commission. A Stripe S-1 would define the target initial Stripe stock price for its public offering. The S-1 would also reveal financial information, list the IPO backers, and outlines areas for future growth and risks.
The company has not announced a definitive Stripe IPO date. The NYSE or NASDAQ stock exchanges do not yet publicly list Stripe stock. There is no Stripe ticker symbol or Stripe stock associated with the company.
Private companies stipulate their own minimum requirements to qualify for a public offering. Stripe's current documents do not outline the minimum market cap or stock price for a qualified public offering. The minimum gross proceeds from the sale of Stripe stock in a public offering is also unknown.
When markets are unstable, private companies with little cash are more likely to seek funding through an IPO. Since Stripe has ample funding, it is unlikely to IPO for that purpose. Stripe may IPO to give employees and shareholders liquidity, but management may lose some control in the process.
Some experts believe Stripe would choose to pursue a direct listing instead of a traditional IPO. Direct listings allow companies to sidestep the traditional roadshow, underwriting costs, and stock lockup period post exit.
In January 2023, CEO Patrick Collison disclosed a goal to either take Stripe public or allow a secondary sale by the end of the year.
Stripe's valuation hit a peak in March 2021 at $95 billion. Stripe decreased the internal valuation of its common stock in 2022. The Stripe 409a valuation dropped to $74 billion, $63.4 billion, and finally $63 billion.
In May 2023, Stripe raised $4.6 billion in its Series I funding round. This funding round set the Stripe valuation at $50 billion. Series I investors were Baillie Gifford, Thrive, Founders Fund, MSD Partners, Andreessen, Goldman Sachs, General Catalyst, GIC and Temasek.
Reports of Stripe's revenue grew reportedly by 70% in 2020, 54% in 2021, and 25% in 2022.
During the coronavirus boom, Stripe increased its employee base and associated costs to keep up with growth. In November 2022, Stripe was in the news for having fired 14% of its workforce in reaction to slowing growth. During this time, many other tech companies such as Brex and Chime laid off employees because of similar pressures.
Now that Arm, Instacart, and Klaviyo have thrown their hats into the IPO ring, other tech stocks may follow suit. Experts say the success of these upcoming IPOs will greatly impact the timelines of other tech companies considering an exit.
Stripe is well positioned to IPO having operated for more than 10 years. Because of its size and market share of over 20% by conservative estimates, Stripe's exit would be significant.
Goldman Sachs and JPMorgan Chase have been hired by Stripe to help decide if, how, and when to go public. Those who want to invest in Stripe stock will be waiting for news of a Form S-1 filing.
This page will be updated as further details of the Stripe IPO timeline become available.