Stripe has raised $6.5bln in Series I funding to value the company at $50bln, a sharp decrease from its peak $95bln valuation two years ago.
The American-Irish digital payments company was expected to raise a lower amount of funding, about $2bln, albeit at a $60bln valuation.
Stripe said on Wednesday that the funds will be used to "provide liquidity to current and former employees" and "address employee withholding tax obligations related to equity awards".
"Stripe does not need this capital to run its business," the company noted.
The primary investors included existing Stripe shareholders Horowitz, Baillie Gifford, Founders Fund, General Catalyst, MSD Partners, and Thrive Capital, as well as new investors including GIC, Goldman Sachs Asset and Wealth Management, and Temasek.
This is just the latest in a series of cuts to Stripe’s valuation after, in July, the company lowered its internal valuation from $95bln to $84bln.
In January, it was reported that Stripe had again reduced its valuation to $63bln.
In between, in November, Stripe laid off 14% of its staff or about 1,120 people.
The reductions come amid pressure on tech stocks during 2022, the worst year for the Nasdaq since 2008.
Stripe remains a private company but plans to eventually proceed with a public offering though that is unlikely to happen this year, a person with knowledge of the matter told Reuters.
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