Business Technology

Thursday 24 October 2019

Irish firm Stripe enters funding stratosphere with new $250m round to reach $35bn valuation

John and Patrick Collison
John and Patrick Collison
Adrian Weckler

Adrian Weckler

Stripe, the online payments firm founded by Limerick brothers Patrick and John Collison, is now valued at $35bn (€31.7bn) after the company confirmed a new funding round of $250m (€226m).

The money comes from a variety of financiers, including General Catalyst, Sequoia and Andreessen Horowitz.

The move comes after the company, which now employs 2,000 people and over 200 people in its Dublin European headquarters, announced expansion into eight new EU countries.

It also recently announced a new corporate credit card (Stripe Corporate Card) and a lending business to small firms (Stripe Capital).

The eight new countries in the Stripe rollout are Poland, Estonia, Latvia, Lithuania, Slovakia, Slovenia, Greece and Portugal.

Stripe is an online payments system that lets online stores accept payments through ordinary means (such as credit cards) without any special measures being taken. The success of the system is attributed to the relative ease by which it can be installed by website creators setting up a company’s online shop.

Stripe’s business model is to take a small cut of the transaction. In Europe, it’s 1.4pc plus 25c for European cards or a little more for non-European cards from those using it to sell.

But it’s Stripe’s scale that is now its strength.

In addition to accepting payments, companies can use Stripe to handle accounting, billing, paying out to third parties and optimising for mobile payments. Stripe users also get access to mobile wallets such as Apple Pay and Google Pay.

The company’s new lending business, Stripe Capital, is being introduced in the US with other countries in line for the service in future.

The San Francisco based firm can now use some of the data it has amassed from e-commerce through its platform

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