Payment giant Stripe has issued a tender offer to employees and shareholders, valuing the company at $91.5 billion. This amount represents a medium-range valuation of the firm compared to its peak of $95 billion that was reached in 2021. This growth is aligned with the large demand for its service.
Stripe’s co-founder and President John Collison emphasized the company’s commitment to equipping its employees and shareholders with disincentive liquidity, a key factor behind the decision to offer the tender.
According to him, “We very much care about providing good liquidity for employees and existing shareholders.”
No Immediate Plans Regarding IPO, focusing on Long-Term Growth
Despite the company’s soaring valuation, Stripe does not have any near-term plans of having an initial public offering (IPO).
Collison explained,“We are not dogmatic on the public vs. private question,” adding, “We have no near-term IPO plans.” Other than that the company continues to prioritize its long-term growth and profitability.
For 2024, Stripe reported $1.4 trillion in total payment volume, a 38% increase compared to the previous year and confirmed it was profitable in 2024 with the intention to remain profitable in 2025.
The company has built its reputation through its significant impact on the AI sector, with notable AI-based startup companies such as OpenAI, Anthropic, and Mistral among its clients.
Collison highlighted the role of AI in Stripe’s growth, stating:
“Unlike previous booms that were more speculative in nature where you had asset price speculation, here we are seeing an AI boom that is very real.” He continued, “There’s a bunch of companies that have grown and grown and grown over the past few years, but they’ve grown because they have real revenue and they have real revenue because they have customers that find their products really useful.”
A Strong Position in the Disruptor 50 List
Stripe’s achievements have been acknowledged and as such recognized third place on CNBC’s Disruptor 50 list for 2024, up from 28th in 2024. This leap further cements the place that Stripe currently occupies as a leader in the payments industry as well as a driving force for the rapidly growing AI arena.
The company’s ongoing success has been shown to support its efforts to help employees and early investors through tender offers in order to provide sustainable growth and maintain flexibility in the business model
Read also: Amazon Unveils Its First Quantum Computing Chip, Ocelot in the Race for Quantum Advantage
