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Stripe’s Valuation Nearly Doubles, Beats PayPal, Square, and Apple

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Valuation up to $9.2 billion

The valuation of closely held digital payments provider Stripe has nearly doubled in almost one year after a recent fundraiser. Stripe’s new valuation is quoted at $9.2 billion, sharply up from ~$5.0 billion in July 2015. The uptick in Stripe’s valuation follows the completion of a new funding round led by CapitalG, a unit of Google’s parent Alphabet (GOOGL).

Stripe is hoping to capitalize on the growth of online shopping. It’s estimated that only 9% of global retail commerce will be conducted over the Internet in 2016, but e-commerce is forecast to continue growing at double digits (23%) until 2020.

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Soaring valuation

Stripe is not only now valued far higher than other high-flying US fintech (financial technology) startups such as Betterment and Social Finance, but its valuation leap comes when its major rivals are struggling to keep their valuations.

Square (SQ), the payment processor led by Twitter (TWTR) Chief Executive Officer Jack Dorsey, has seen its valuation stagnant since its IPO (initial public offering) in 2015. Shares of Square have risen less than 10% over the past year. The same case goes for PayPal (PYPL), whose valuation has risen less than 10% in the last year. Apple (AAPL), whose Apple Pay service is also fighting for space in the digital payments market, has fallen ~7% in one year.

Stripe recently raised $150 million from a group of funders that included Sequoia Capital and General Catalyst Partners, besides Alphabet’s CapitalG. After the latest round, Stripe’s valuation shot up sharply to $9.2 billion. Stripe has raised $460 million from investors so far.

Stripe also announced receiving a line of credit from a number of banks including Barclays (BCS), Goldman (GS), and Morgan Stanley (MS). The funds will be used for expansion.

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