Value of Payments Provider Stripe Doubles to $9.2 Billion


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Patrick Collison, the co-founder of Stripe, which helps companies process payments made via credit cards and newer payment tools.

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Joshua Bright for The New York Times

Stripe Inc., a start-up that offers software and services that process payments for businesses, has raised another round of private funding that values the company at just under $9.2 billion, according the company’s investors.

That valuation is nearly double what Stripe was worth nearly a year and a half ago. The company, based in San Francisco, is undergoing a rapid expansion.

When Stripe was founded in 2010 by two Irish brothers, John and Patrick Collison, the company set out to help businesses quickly and easily accept payments from anyone, anywhere in the world. Stripe helps companies including Twitter, Salesforce.com, Lyft and Target process payments made via credit cards and newer payment tools such as Apple Pay, Android Pay, Alipay and even Bitcoin.

It last raised money in 2015, when the company’s products were used in dozens of countries and investors believed that the business was worth $5 billion. Now, the company’s products are used in more than 100 countries.

The latest funding round closed on Wednesday. It was co-led by CapitalG, an investment firm that is part of Alphabet, the parent company of Google, as well as General Catalyst Partners, an investor in Snap Inc., which is preparing for an initial public offering. A previous investor, Sequoia Capital, also participated in the funding round.

In addition to payments processing, Stripe offers a payment fraud prevention product and a tool kit called Stripe Atlas that allows entrepreneurs around the globe to register their new businesses as United States-based companies with a United States bank account, Stripe payments tools and basic legal, tax and computing services from the accounting firm PricewaterhouseCoopers, the law firm Orrick, Herrington & Sutcliffe and Amazon Web Services. Atlas decreases the time it takes to set up a company from months to days.

“Over the last decade, Amazon Web Services enabled any new business to start easily and inexpensively,” said Hemant Taneja, a managing director at General Catalyst. “Stripe is doing the same thing for online commerce. A large majority of the companies started in the U.S., and increasingly all over the world, will start with tools from Stripe.”

Previous investors include Kleiner Perkins, Founders Fund, Thrive Capital, Visa, American Express and three PayPal founders, Peter Thiel, Max Levchin and Elon Musk.

A Stripe spokeswoman did not return calls for comment on Friday. Its funding round was earlier reported by The Wall Street Journal.

Although Stripe has expanded into other products to enhance and expand online commerce, the company continues to make money by charging fees on each transaction.

“Stripe’s momentum as the underlying platform for online commerce is just accelerating when you think about the fact that less than 10 percent or so of commerce is online today,” Mr. Taneja said. “Stripe has been widely misunderstood as a low-margin payments company.”

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