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This comes a month after the payments giant was valued at around $70bn after Sequoia Capital offered to buy shares from its investors.
Stripe is planning to buy back shares held by its employees in a new tender offer as speculation continues around when the payments giant may file for an initial public offering (IPO).
According to The Information, which first reported on the story, Stripe will finance the tender offer by itself and without any help from institutional investors as it had in previous instances. People with knowledge of its financial performance told the outlet that Stripe had a free cash flow of $615m in the quarter ended June, a significant improvement in its financial health since the pandemic.
Just last month, the company founded by Limerick brothers Patrick and John Collison was valued at around $70bn after Sequoia Capital offered to buy shares from its investors.
In a letter to limited partners, Sequioa offered to buy up to $861m in Stripe shares at $27.51 each. An Axios report suggested it offered the price to limited partners in funds raised between 2009 and 2012 who may have been looking for liquidity.
Last month’s offer was the latest vote of confidence for Stripe. It was valued at $95bn back in 2021 but saw this slashed to $50bn a year ago. Since then, its valuation has been steadily rising.
While the Collison brothers have made no indication an IPO is on the horizon, many in the tech industry have been speculating the company is getting ready to float.
In February this year, Stripe saw its valuation surge to $65bn after signing agreements with investors to provide liquidity to its current and former employees in a tender offer. By April, the company had raised more than $694m.
The company dually headquartered in Dublin and San Francisco recently made a major change to its business by allowing customers to use some of its services without needing to be a client of its main payments platform. It also shared plans in April to slowly bring back crypto payments as part of its services after a six-year hiatus.
Last month, it also acquired competitor Lemon Squeezy, a US-based payments processing start-up founded four years ago that had been processing payments on Stripe since its inception.
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