Stripe, a company that processes payments, announced that it had secured commitments to raise more than $6.5 billion at a valuation of $50 billion, or roughly 47% less than its 2021 valuation of $95 billion.
The company stated in a news release on Wednesday that it will use the earnings to provide employees access to cash rather than using the money to fund operations. The money raised “will be used to provide liquidity to current and former employees and address employee withholding tax obligations related to equity awards, resulting in the retirement of Stripe shares that will offset the issuance of new shares to Series I investors,” according to a press release.
New investors GIC, Goldman Sachs Asset and Wealth Management, and Temasek joined existing Stripe owners Andreessen Horowitz, Baillie Gifford, Founders Fund, General Catalyst, MSD Partners, and Thrive Capital in the fresh round of funding, the firm stated in a statement.
Using macroeconomic concerns including inflation, rising energy costs, and increased interest rates as justification, Stripe said in November that it was eliminating over 1,000 employees, or 14% of its workforce.
On the fresh funding round, Goldman Sachs served as the sole placement agent while JP Morgan served as the financial advisor.