Technology

Payments unicorn Stripe raises $600 million and says it has $2 billion on its balance sheet

The company said that due to coronavirus "several years of offline-to-online migration are being compressed into several weeks"

Stripe's founders Patrick and John Collison
Stripe's founders Patrick and John Collison. Photo: Stripe/Courtesy
  • According to the company, the money will be used to increase “product development, further global expansion, and strategic initiatives”;
  • Launched in 2011 by the Irish entrepreneur brothers John and Patrick Collison, the company’s headquarters is in San Francisco.

The payments unicorn Stripe announced on Wednesday that it had raised $600 million in new capital. It’s an extension of its Series G round, which was announced in September last year, and includes investors such as Andreessen Horowitz, General Catalyst, GV, and Sequoia. At the time, Stripes was valuated $35 billion.

According to the company, the money will be used to increase “product development, further global expansion, and strategic initiatives”. Stripe highlighted that the investment is related to the COVID-19 pandemic since because of this current crisis “several years of offline-to-online migration are being compressed into several weeks”.

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“In this context, Stripe’s mission—to grow the GDP of the internet—means providing an on-ramp to the digital economy for businesses around the world. The rate of new businesses going live on Stripe has accelerated since the start of the year,” stressed the company.

When it comes to global expansion, the company said that it will soon arrive in Bulgaria, Cyprus, the Czech Republic, Hungary, Malta, and Romania.

In Latin America, the company is present in Mexico since last October. Launched in 2011 by the Irish entrepreneur brothers John and Patrick Collison, the company’s headquarters is in San Francisco. Stripe says it has clients from 120 different countries.

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Stripe also said that it has “more than $2 billion on its balance sheet”, and a “highly-diversified, growing, global user base”. Among the new enterprise clients, the company announced the most recent one: the conference platform Zoom.

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And the company’s focus at this time is not only on large organizations but also on small businesses in the United States, saying that it expects to facilitate $1 billion in sales for businesses that launched on Stripe since the onset of the virus in the country, including even “individual farmers, with no experience running an internet business”.