Stripe raises $694m through share sale to provide employee liquidity
Fintech heavyweight Stripe has raised $694.2 million in the tender offer it announced at the end of February, according to a regulatory filing with the US Securities and Exchange Commission (SEC).
Stripe raises over $694m through tender offer announced in February
In February, the company revealed it had “signed agreements with investors to provide liquidity to current and former Stripe employees through a tender offer”, with the deal valuing the company at $65 billion.
This marked a 30% increase on the $50 billion valuation it achieved last year when the firm raised more than $6.5 billion in funding from investors. Stripe also acquired fellow San Francisco-headquartered fintech Okay for an undisclosed sum last year.
Announcing the tender offer back in February, Steffan Tomlinson, Stripe’s chief financial officer, said that the firm’s new valuation came as the business continued to “see strong momentum with the most advanced companies in the world”, highlighting partners such as Airbnb, Microsoft, Uber, and WhatsApp.
The company also added: “While the majority of funds for the tender offer are being provided by investors, Stripe will also use a portion of its own capital to repurchase shares to offset dilution from the company’s employee equity compensation programs.”
The news comes as speculation continues to swirl about the possibility of a Stripe IPO in the near future, but the company has yet to confirm any plans for potentially going public.
