Stripe, the San Francisco digital payments startup, has landed a $100 million investment from Tiger Global Management, boosting its valuation above $20 billion.
According to a report in CNBC, citing The Information, with the $100 million investment by Tiger Global Management, Stripe now has a valuation of $22.5 billion. It comes on the heels of Stripe raising $245 million in a Series E round of fundraising last fall. At the time, CNBC noted that Stripe had a valuation of $20 billion.
With consumers increasingly embracing digital payments, venture capitalists have been taking notice. Stripe is a leader in the market, with its platform that enables electronic payments and secure transactions both in-store and online. Among payment startups, Stripe is by far the most sought-after by venture capitalists. It is the most valuable of the U.S. unicorns (those with valuations of more than $1 billion), even surpassing Palantir’s $20 billion valuation, noted CNBC.
Other investors in Stripe include Andreessen Horowitz, Peter Thiel, Elon Musk, Google’s venture arm Capital G, Sequoia Capital and Kleiner Perkins, reported CNBC, citing data from PitchBook.
“Stripe is rapidly scaling internationally, as well as extending our platform into issuing, global fraud prevention and physical stores with Stripe Terminal,” a Stripe spokesperson said in an emailed statement. “The follow-on funding gives us more leverage in these strategic areas.”
Stripe has been expanding its services and offerings in recent months, with the company announcing a new partnership with Funding Circle last week. With the partnership, Stripe can link small and medium-sized business customers to financing provided by Funding Circle. The deal also lets Stripe integrate their sales data with Funding Circle, enabling them to receive faster decisions on loan applications. When announcing the deal, Stripe said online commerce represents just 3 percent of GDP, and that it wants to increase that by allowing more small businesses to accept online payments.