Stripe cuts 28% of valuation

Payments company Stripe has slashed its valuation by 28%, wiping $21 billion off the company’s valuation, cutting the headline figure to $74 billion. The company is the latest privately-funded fintech to suffer from the consequences of a sustained sell off of tech shares.

The company informed employees of the mark down by e-mail, setting its implied share price at $29, which was previously $40. Stripe was last valued at $95 billion after a $600 million funding round sealed in March 2021.

When asked about the company’s valuation last month, Stripe Co-Founder John Collison said that the company had plenty of runway with cash in the bank. He said, “I don’t know, we haven’t tried. Stripe the business has grown a lot since then, but then valuations have gone down…”

Apart from Stripe, Instacart Inc. marked down its internal valuation to $24 billion from $39 billion to help with retention and recruiting by giving employees more potential upside with their options. Stripe processes payments for fellow startups and tech companies including skincare provider Glossier Inc., enterprise service Twilio Inc., and ride-hailing service Lyft Inc.