Stripe Now Valued At $95B: Could SPAC Deal Or IPO Be Years Away?

Stripe, a fintech company with headquarters in Ireland and North America, has announced a new funding round of $600 million.

What Happened: Investors in the funding round including Allianz, Axa, Baillie Gifford, Fidelity, Squoia and the National Treasury Management Agency of Ireland.

The funding round values Stripe at $95 billion.

The capital raised will be used by Stripe to invest mainly in Europe, where the company said it's seeing surging demand for its enterprise business.

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The company counts Jaguar Land Rover, Maersk, Metro, Deliveroo and Klarna among its partners. Over 50 category leaders that process $1 billion in annual payments are Stripe customers.

The enterprise business line is now the largest and fastest-growing component for Stripe, with revenue more than doubling year-over-year, according to the company.

Stripe has business operations in 42 countries, including 31 European countries.

“We’re investing a ton more in Europe this year, particularly in Ireland, Stripe co-founder John Collison said in a statement. “Whether in fintech, mobility, retail or SaaS, the growth opportunity for the European digital economy is immense.”

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Why It’s Important: Stripe has been a long-rumored IPO candidate given its huge valuation.

The company has also been the subject of rumors tied to Bill Ackman’s Pershing Square Tontine Holdings (NYSE:PSTH) SPAC.

With the large amount raised and the new valuation, it seems unlikely that Stripe will go public in the near future.

Given the $95-billion valuation, a SPAC deal would own a small percentage of the company and seems unlikely at this time.

PSTH Price Action: Shares of Pershing Square Tontine Holdings are down 3.61% to $27.38 at last check on Monday.

Photo courtesy of Stripe.