What Stripe is doing and achieving to be valued at nearly $ 100 billion
Stripe’s rise is being meteoric. Following its recent round of funding, Stripe has become the most valuable startup in the US with a valuation of 95,000 million dollars. In a couple of years, the payment company has tripled in value and has reached levels available to very few companies.
To get an idea, Stripe exceeds the level that Facebook had with its latest assessment before going public, about 80,000 million, and is above the last value of SpaceX, located in about 74,000 million. Some numbers that except for Chinese giants like ByteDance The Ant Group, make Stripe the largest private company in the world.
Why is Stripe so valued? Here we review their latest successes, what they offer and what other companies they work with. A giant that has remained in the background during these last years but where this latest round of funding places them directly to fight against the tech giants we all know.
Silicon Valley’s new star is of Irish origin
The origin of Stripe dates back to 2020, when John and Patrick Collison, two Irish brothers, decided to found Stripe in San Francisco. Since then, the growth of the company has been constant, with important rounds of financing in 2018, 2020 and finally the latter announced today for $ 600 million and what is its objective help expand Stripe across Europe.
Stripe continues to strive to become the payment gateway most used in the world, not only for end users, also in the corporate market. Stripe can be understood as a company that helps others manage payments. To date they have worked with small and medium-sized companies, but their focus is now on large companies.
According Dhivya Suryadevara, Stripe’s CFO, Stripe processes hundreds of billions of dollars in payments each year, with presence in 42 countries.
For this 2021, from Stripe they intend to “double their business capacities” with the incorporation of clients such as Twilio or Zapier. Companies that will join Deliveroo, Doctolib or the N26 bank, already using Stripe to handle payments.
The rise of electronic commerce due to the pandemic has meant an added boost to the success of Stripe, which is already in all the pools as the next startup that will decide to make the jump to go public, despite the fact that for the moment they have publicly denied the rumors.
Stripe has more than 2,500 employees and 14 international offices. Its headquarters are in San Francisco and Dublin, one of its objectives from the last round of financing being that of create 1,000 jobs In Ireland.
The great reference in the fintech world together with Paypal
Stripe has a large number of services. Stripe is often referred to as the great reference in the fintech world and one of the companies that can challenge the traditional banking method of working. As defined by the company itself, Stripe allows “companies of all sizes to accept payments and manage their businesses online with their software.” The company offers from a payment platform, applications to manage income and a cloud infrastructure. Through Stripe, a company can manage payment options such as Google Pay, transfers, card payments, fund transfers or tokenization from a single system.
Based on company data, Stripe supports more than 135 currencies and payment methods and handles more than 250 million API requests per day.
In December 2020, Stripe announced Treasury, a tool to “solve traditionally more complicated processes in an instant” such as opening a bank account. For it, teamed up with Goldman Sachs and Evolve Bank In the USA.
Through Treasury, other companies like Shopify could offer their users access to loans and credit cards and debit.
Stripe has convinced companies of all levels
Stripe’s clients include companies of all kinds. A first group are e-commerce companies. Here Stripe collaborates with companies such as Glovo, Chicfy, Under Armor, We Are Knitters or elparking.
In a second group are plataformas B2B como Shopify, Squarespace, Booking o DocuSign, who have teamed up with Stripe to improve their payment system. We also have software as a service companies, such as Typeform, Freepik or Dashlane, or transport or food vendors such as Lyft, Deliveroo or Instacart.
According Stripe data, the company has added 200,000 companies in Europe since the start of the pandemic. The fintech company that comes closest to Stripe in valuation is Robinhood, the app that found itself in the midst of chaos with GameStop, and which is valued at about $ 11.7 billion, according to CNBC.
“We are investing in the infrastructure that will drive online commerce in 2030 and beyond,” says Dhivya Suryadevara. An ambition that points to the next decade but where today it is enough to generate significant income, based mainly on the 2.9% commission + 0.25 cents that applies to the transactions carried out.