Stripe may go public next year, allows exit for investors and employees

Global fintech giant Stripe has told employees that it plans to go public in the next 12 months, The Information reported, citing people familiar with the matter.

The firm is also considering the option of letting employees sell their shares through secondary sales.

The plans come as restricted stock units of the payments major’s veteran employees are set to expire, which would see a major part of their compensation vanish if no action is taken.

According to The Wall Street Journal, Stripe’s public listing will be different from a traditional IPO as it won’t involve raising money. Shares owned by early investors and employees will be put into the public market, which will determine the price.

The company has tapped JPMorgan and Goldman Sachs to help it through its liquidity raise, according to The Business Times.

As one of the most valuable private tech companies in the world, it’s natural that Stripe’s early investors and employees are seeking a way to exit. However, the US-based startup may face challenges in rising interest rates, inflation, and the possibility of a recession.

In 2021, Stripe raised US$600 million in a series H funding round that put its valuation at US$95 billion. However, the firm’s valuation has dropped to around US$63 billion, according to The Wall Street Journal.

In November last year, Stripe announced that it will cut around 14% of its employees to adjust its business for “leaner times.”

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