Payments processor firm Stripe said it signed agreements to raise more than $6.5 billion at a valuation of $50 billion, which is about 47% lower than its 2021 valuation of $95 billion.
The company said in a press release on Wednesday that it doesn't need the capital to run its business; rather, it will use the proceeds to provide employee liquidity. "The funds raised will be used to provide liquidity to current and former employees and address employee withholding tax obligations related to equity awards, resulting in the retirement of Stripe shares that will offset the issuance of new shares to Series I investors," according to the press release.
The investors for the new round included existing Stripe shareholders Andreessen Horowitz, Baillie Gifford, Founders Fund, General Catalyst, MSD Partners and Thrive Capital, and new investors GIC, Goldman Sachs Asset and Wealth Management and Temasek, the company said in the statement.
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In November, Stripe said it was cutting over 1,000 jobs, or 14% of its staff, citing macroeconomic factors including inflation, rising energy prices and higher interest rates.
Goldman Sachs served as sole placement agent on the new funding round, and JPMorgan acted as financial advisor.
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