It’s forecast to be one of the biggest fintech debuts the investing landscape has ever seen, and Stripe has been steadily ramping up its preparations ahead of a huge 2022 IPO. With both the initial public offering market and fintech industry thriving, the timing of the floatation may prove to be perfect for the renowned payments provider.
The company has recently announced that it’s intending to hire hundreds of new staff members in a bid to undergo significant expansion into Europe alongside its IPO. Stripe’s expansion into Europe has been steadily gathering momentum over the past year, the company began hiring new engineers for its London office in 2020 and expects this momentum to continue into the future as Stripe sets its sights on global growth upon going public.
As 2021’s most valuable private firm in the US, weighing in at a seismic valuation of $95 billion, the prospect of a Stripe IPO would undoubtedly cause a stir to say the least. Should the favourable market conditions that we’ve become accustomed to this year continue into 2022, an initial public offering for the payment giants may return record-breaking results. But what would a Stripe IPO look like? Let’s take a look at what the future has in store for the wildly successful fintech startup.
With an estimated value of almost $100 billion, a debut would mean that Stripe overtakes fellow fintech Coinbase’s direct listing in April 2021 at a value of $86 billion. The company has reportedly already begun the preparatory process of going public by hiring law firm, Cleary Gottlieb Steen & Hamilton LLP as a legal advisor on the early stages of their preparations.
Can Stripe’s fundamentals support a mega IPO? Well, the company raised $950 million through VC funding in 2019 and 2020 alone – with a $600 million round arriving in 2020 during the peak of the Covid-19 pandemic. The company itself experiences sizeable growth during this period due to the rise of online shopping and electronic payments. With a further $600 million raised in 2021, Stripe’s revenues had reportedly climbed to $1.6 billion in 2020, with a workforce 4,000 strong at the time.
As for competition, Stripe has industry giants like PayPal and Square to compete with. With a market cap of $305 billion at the time of writing, PayPal is a formidable competitor for Stripe – and there’s likely to be room for both entities to comfortably co-exist to the point where this shouldn’t hinder one of the most sought after IPO’s to date.Back To News & Insights