(Reuters) -Payment service provider Stripe’s valuation surged to $65 billion in a deal that will allow some of its employees to cash out their stock in the company, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
The deal could allow Stripe more flexibility with its plans to file for an initial public offering (IPO), which investors and analysts have been anticipating for years.
Stock-based payouts typically comprise a big chunk of the compensation for startup employees, who have no way of converting their shares into cash unless their employer files for an IPO, raises funds in a private round or buys back their shares.
Stripe and some of its investors have agreed to buy over $1 billion of shares of current and former Stripe employees, the WSJ report said, adding that Sequoia Capital and Goldman Sachs’s growth equity fund were participating in the deal.
The company did not immediately respond to Reuters request for comment.
Stripe was valued at $50 billion in its last funding round in 2023 where it raised $6.5 billion. The company had then said that it did not need the capital to run its business but would use it to cover a tax bill and to provide liquidity to employees.
(Reporting by Niket Nishant in Bengaluru; Editing by Arun Koyyur)
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