Payments processor Stripe on Wednesday raised $6.5 billion in a funding round led by existing and new investors at a sharply reduced valuation of $50 billion, down nearly 50% from two years ago.
Stripe said it would use the cash to cover a large tax bill associated with stock granted to employees and to provide liquidity to employees.
About $3.5 billion of the newly-raised capital will be used to cover the tax bill, with the rest being used to buy shares from employees, according to a person familiar with the matter, who requested anonymity as these discussions were confidential. The latest funding marks a steep decline in the valuation of the fintech startup, which was valued at $95 billion in March 2021.
Stripe said it did not need the new funds to run its business. Venture capital firms including Andreessen Horowitz, Baillie Gifford, Founders Fund, General Catalyst, MSD Partners, and Thrive Capital led the latest funding round, according to a statement from the company. While Stripe still plans to eventually proceed with an initial public offering, that is unlikely this year, the person said.
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