Is Stripe Going Public Soon?

Investors have been on tenterhooks since payment solutions leader, Stripe, took steps to prepare for a potentially massive public debut.

It’s the question that’s been on everyone’s lips for months: “When is Stripe going to IPO?”

According to reports, Stripe, the U.S.’s most valuable private company, has lawyered up in preparations for its public debut. The payment solutions leader has hired law firm Cleary Gottlieb Steen & Hamilton, who specialize in the due diligence required to help a company go public. 

When is Stripe going public?

It is very early days and the company has made no comment on its plans to float, though it is likely not going to happen in 2021. However, many analysts believe that the company will actually go public via a direct listing rather than via a traditional initial public offering (IPO). 

Learn more about the difference between an IPO, direct listing, and SPAC here.

The reason for this, according to reports, is that Stripe doesn’t have the same need as other companies to raise money via an IPO roadshow. Through a direct listing, it avoids much of the volatility and listing costs associated with IPOs. 

How much is Stripe worth?

In its most recent funding round in February, Stripe raised a further $600 million. This left it with a private estimation of roughly $95 billion — 2.5 times what it had been valued at a year earlier. 

This makes it the second-most-valuable unicorn on the planet, behind China’s TikTok owner, ByteDance. 

How much money does stripe make?

As a private company, Stripe does not unveil all of its financial details. However, analysts reported that its 2019 revenue was in excess of $450 million, but expect that it now surpasses $1 billion annually. 

According to Stripe’s website, the company processes “hundreds of billions of dollars each year for startups to Fortune 500s” and “more than 250 million API requests per day.”

Stripe also claims that “90% of U.S. adults have bought from businesses using Stripe.”

Who owns Stripe? 

Stripe is owned by several private investors, including Sequoia Capital, and by its two now-billionaire founders, Irish brothers Patrick and John Collison.

If you want to read more about Stripe’s potential when it goes public, read our blog here.

While you’re waiting for Strip to go public, you might want to consider some other top payment solutions stocks that you can buy today. Click here to access a free access to MyWallSt and gain access to our market-beating list of stocks. It’s the best investment you’ll ever make.

MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in Tesla and Alphabet. Read our full disclosure policy here.

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