American technology company, Stripe Inc. raised a new fund. The new financing of Stripe increased the company valuation to about $9 billion. The company has a strong position in the industry. The act has cemented Stripe’s position more robustly. Raising more money can be a sign of launching initial public offering too.
Companies invested in Stripe
Stripe Inc. has the reputation in the industry of digital payment. Till date, the startup raised $450 million. Interestingly, financial companies like, CapitalG, General Catalyst Partners, and Sequoia Capital are on the list. However, before getting a valuation of $9 billion and the company was valued at the rate $5 billion.
When the whole startup sector is bogging down, Stripe is performing with flying colors. In particular, Indian ride-sharing service Ola is seeking new funding at a 40% percent lower valuation.
Having credit facility worth of around $250 million from JPMorgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley, and Barclays Plc. is working as a tailwind for Stripe. Why are these elephantine financial companies leveraging the digital payment company? As these banks are racing with each other to have IPO clients in the tech sector they are giving credit facility. Moreover, Stripe is earning more goodwill. Thusly, it will be able to earn attention from public during IPO launch.