Stripe's Valuation Fell by 28%

  • FinTech StartUps
  • 14.07.2022 07:11 pm

An impartial party determines a 409A, which affects Stripe's common shares. If Stripe goes public, their preferred shares will be changed into common shares, devaluing their holdings. 

Stripe's current valuation is $74bn, down from $95bn, with an internal share price of $29. On 30 June, the payments processor emailed its share drop. 

Stripe follows several major fintech startups that have suffered severe devaluations since 2022. Klarna, a popular BNPL provider, closed a $800m investment round at a $6.7bn valuation, a sharp drop from its $46bn valuation last year. 

Due to falling market valuations, numerous fintech firms have laid off personnel. Fintech investment fell in 2022 due to many internal and external issues. Inflation and looming recessions in countries like the UK have further reduced investment. BNPL marketing must be "fair, unambiguous, and not deceptive," and the UK requires stricter affordable credit checks for BNPL consumers.

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