Payments processor Stripe raised $6.5 billion in its latest fundraising round ending on Wednesday. During this round of fundraising, the company reduced its valuation to $50 billion; almost 50% lower than two years ago.
Valued at $95 billion in March 2021, Stripe vastly exceeded its fundraising target of $4 million after receiving a higher level of demand from investors than was initially expected. Among the major contributors during the latest round were venture capital firms Andreessen Horowitz, Baillie Gifford, Founders Fund, General Catalyst, MSD Partners, and Thrive Capital.
Stripe confirmed that it does not require its newly acquired funds in order to assist in the running of the business, instead putting the investment towards covering a tax bill concerning stock granted to employees while using the remainder to buy shares from employees. About $3.5 billion is expected to be put toward the tax bill.
New investors that joined in the latest round of investment include GIC, Goldman Sachs Asset and Wealth Management, and Temasek.