GIC, Temasek join US$6.5 billion fundraising of US fintech Stripe

SINGAPORE state investors GIC and Temasek are new investors in the latest US$6.5 billion fundraising by Stripe, which nearly halved the US fintech’s valuation to US$50 billion.

Other investors in the round include existing Stripe shareholders – Andreessen Horowitz, Baillie Gifford, Founders Fund, General Catalyst, MSD Partners and Thrive Capital – as well as another new investor, Goldman Sachs Asset and Wealth Management, the fintech announced on Thursday (Mar 16).

The company will use the capital to address tax obligations arising from equity awards to its staff, as well as to provide liquidity to current and former employees. The tax bill was reportedly estimated at US$3.5 billion, according to past media reports.

Stripe emphasised that it “does not need this capital to run its business”. Rather, the fundraise gives employees “the opportunity to access the value they’ve helped create”, said John Collison, the company’s co-founder and president.

Goldman Sachs served as sole placement agent on the fundraise, while JPMorgan acted as a financial adviser. The transaction comes with a sharp valuation drop for Stripe, which was reportedly last valued at US$95 billion in March 2021. Private tech companies are coming under pressure to turn profitable amid global economic headwinds and the weak market for initial public offerings.