Stripe reportedly nearing a $3bn raise

Existing investor Thrive Capital has reportedly already committed $1bn.

Just a few weeks after cutting its internal valuation for a third time, Stripe is reportedly in talks to raise as much as $3bn.

The fintech told employees last week that it would evaluate a public offering next year, but is now looking to raise from its existing investors, as first reported by The Information.

According to reports, discussions around the raise have heated up recently, and are likely to value the company at between $55bn and $60bn.

While this is a drastic cut from its last raise in early 2021 which valued the company at $95bn after a $600m raise, it is not too far from its recent internal drop to $63bn.

The most recent internal valuation cut of 11 per cent marked the third for the payments giant in the last six months, following a 28 per cent cut last July and a smaller cut again in October.

A source told the New York Times that Thrive Capital, founded by American billionaire Joshua Kushner, is leading the potential investment and has committed $1bn to Stripe.

The investment would reportedly be used to pay tax liabilities associated with employee stock grants and to enable employees to sell their shares, rather than to fund or expand operations.

The down-round of funding should give the company room to breathe as it considers its options to go public this year, having brought Goldman Sachs and JP Morgan Chase on board as advisers as it considers its options.