(Reuters) – Digital payment processor Stripe said Wednesday that its latest funding round was valued at $50 billion, nearly half from its previous funding, amid a tough economic environment.
The latest round was backed by existing investors including venture capital giant Andreessen Horowitz, Peter Thiel’s Founders Fund and General Catalyst, the company said. New investors including Singaporean sovereign wealth fund GIC, Goldman Sachs Asset and Wealth Management, and Temasek also participated in the round, bringing in $6.5 billion in revenue for Stripe.
Stripe’s capital raises constitute what’s commonly known as down rounds, with the latest round valuing the company lower than previous rounds. The company, which includes Amazon.com Inc, Ford Motor Co, Salesforce and BMW, was valued at $95 billion in its final funding round in early 2021.
After years of signing big checks for successful start-ups, investors are becoming more cautious as excess liquidity is dried up by the US Federal Reserve’s monetary tightening. Startup metrics like profitability and cash burn are now being scrutinized more closely. Last year, Swedish giant Klarna also had to take a down round.
Stripe intends to use the funds to pay taxes, and the company said it doesn’t need capital to run its business. The company, which has been aiming to turn profitable before going public, is unlikely to launch an initial public offering this year, Reuters reported last month.