Patrick & John Collison/Stripe.
Payments giant Stripe cuts internal valuation by 28%
The fintech joins a trend of valuation drops in the industry, but unlike others has made the cut itself.
Stripe has become the latest fintech to take a huge valuation cut as the market downturn continues to impact the industry.
The company has reportedly slashed the internal value of its shares by 28 per cent, sources told the Wall Street Journal.
The Journal reported that the valuation cut comes from a 409A price change, an independent appraisal, that saw shares drop from $40 in the last valuation to around $29, in turn lowering the implied valuation of the shares to $74bn, according to one source.
San Francisco-based Stripe reportedly sent an email to employees with the information, and also said the board approved the lower share price effective 30 June, but did not provide an explanation about the decision.
Following a successful year of fundraising in 2021, many fintechs have seen the tides turn this year in line with the market downturn.
While at first it looked like they might be immune, rising interest rates and the likelihood of an economic recession have hit the industry, with mass layoffs, hiring freezes and valuation cuts.
Stripe declined to comment.