Fintech giant Stripe lowers valuation by 28% amid economic meltdown

New Delhi, July 15 (IANS) Leading fintech company Stripe has reportedly taken a huge 28 per cent valuation cut amid tough global macroeconomic conditions that have hit nearly all the sectors very hard as recession fears loom.According to a report in The Wall Street Journal citing sources, payments giant Stripe, last valued at $95 billion, has cut the internal value of its shares by 28 per cent.The internal share price is now about $29, compared to $40 in the most previous internal valuation, known as a 409A valuation, the company reportedly told its employees in an email.A 409A valuation is an independent estimate of a startup's fair market value, often used to price stock options to employees.The development would lower Stripe's valuation to $74 billion, the report mentioned late on Thursday.A prolonged market sell-off has hit tech companies really hard amid slowed VC funding and layoffs across the spectrum -- from Big Tech like Microsoft to startups, including crypto platforms.In March 2021, Stripe raised $600 million from a group of investors, and was valued at $95 billion in that round.Recently, Klarna, the Swedish buy now pay later (BNPL) platform, had its valuation cut by a massive 85 per cent to $6.7 billion from its last round.Earlier this year, Instacart lowered down its internal valuation to $24 billion from $39 billion, to "help with retention and recruiting by giving employees more potential upside with their options".
--IANS na/arm

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