Stripe, the online payments firm created by Limerick brothers Patrick and John Collison, has raised an additional $600m (€552m) which now values the company at almost $36bn (€33bn) on a ‘post-money’ basis.
The additional cash is being raised for increased product development, global expansion and “strategic initiatives”, the company says.
The huge funding round — the biggest ever by a company run by Irish founders — is happening as the world turns online for its services due to Covid-19 related lockdowns.
“Several years of offline-to-online migration are being compressed into several weeks,” a company statement says of the clamour for online payments.
“The current disruption underscores the need for reliable, easy-to-use infrastructure for internet businesses.”
Co-founder John Collision added that the world’s current bout of social distancing has intensified an online transition that he says was already happening.
“People who never dreamt of using the internet to see the doctor or buy groceries are now doing so out of necessity,” he said.
“And businesses that deferred moving online or had no reason to operate online have made the leap practically overnight. We believe now is not the time to pull back, but to invest even more heavily in Stripe’s platform.”
Stripe confirmed that it has $2bn (€1.8bn) on its balance sheets.
The money is being raised from US-based venture capital investors including Andreessen Horowitz, General Catalyst, GV, and Sequoia. The company says that the financing takes place on the same terms and valuation as Stripe’s last funding round in 2019, when it raised $250m (€230m) Series G.
Stripe has recently expanded its services in the US to include a credit card (Stripe Card) and a small business lending service (Stripe Capital).
It employs 320 people at its Dublin engineering office, considered one of the most important outside the firm’s San Francisco base.