Stripe Slashes Internal Valuation by 28%: Report

Stripe, a leading fintech company, has reportedly taken a massive 28% valuation cut amid tough global macroeconomic conditions that have hit nearly all sectors hard as recession fears loom. According to a Wall Street Journal report citing sources, payments giant Stripe, which was last valued at $95 billion, has reduced the internal value of its shares by 28%.

The internal share price is now around $29, compared to $40 in the most recent internal valuation, known as a 409A valuation, according to an email sent to employees by the company. A 409A valuation is an independent estimate of a startup's fair market value that is frequently used to price employee stock options.

Stripe's valuation would fall to $74 billion as a result of the development, according to a report published late Thursday.
A prolonged market sell-off has taken a heavy toll on tech companies, resulting in reduced VC funding and layoffs across the board, from Big Tech like Microsoft to startups like crypto platforms.
Stripe raised $600 million from a group of investors in March 2021, and was valued at $95 billion at the time.
Klarna, the Swedish buy now pay later (BNPL) platform, recently had its valuation cut by a whopping 85% to $6.7 billion from its previous round. Instacart reduced its internal valuation from $39 billion to $24 billion earlier this year in order to "help with retention and recruiting by giving employees more potential upside with their options."