Payments processor Stripe on Wednesday raised USD 6.5 billion in a funding round led by existing and new investors at a sharply reduced valuation of USD 50 billion, down nearly 50 per cent from two years ago, according to media reports.
As per media reports, Stripe said it would use the cash to cover a large tax bill associated with stock granted to employees and to provide liquidity to employees.
About USD 3.5 billion of the newly-raised capital will be used to cover the tax bill, with the rest being used to buy shares from employees, according to a person familiar with the matter, who requested anonymity as these discussions were confidential.
The latest funding marks a steep decline in the valuation of the fintech startup, which was valued at $95 billion in March 2021.
(With inputs from REUTERS)