US-based global payment giant Stripe has reportedly raised $245 Mn and is looking forward to penetrating the Indian market with the new capital. The company raised the funding at almost two times its previous fundraise valuation. The company is valued at $20 Bn while the last funding was $150 Mn in November 2016 at a valuation of $9.2 Bn. The investment has been led by billionaire investor Chase Coleman’s hedge fund Tiger Global Management, DST Global and Sequoia.
Stripe has received around $685 million in total funding including the latest round. The company boast to include major investors like Sequoia Capital, VISA, American Express, Peter Thiel, and Elon Musk. Stripe aims to position itself better in the overseas markets of South East Asia and India and leverage the growth of the e-commerce industry to expand its payment solutions.
According to the research firm Statista, the South East Asian e-commerce market is expected to reach $87 bn by 2025. “More than 500 Mn people in Southeast Asia and India are expected to become online customers in the next three years,” Stripe said in a media statement.
In December 2017, Stripe landed its presence in India. Amazon India’s former executive Anand Balaji broke the news about using Stripe’s private beta in India on the official blog. However, the payment solutions are still not active in India. Stripe has launched Stripe Atlas were they already helped some Indian entrepreneurs to build and scale global companies. But, Stripe plans to provide the ability to connect local Indian bank accounts and get paid out in Indian currency.
India’s digital payment market is set to touch $1 trillion by 2024 as published by the Niti Aayog report – Digital Payments – Trends, Issues and Opportunities. And this huge market is compelling Stripe to penetrate the Indian market. Several other companies like Instamojo, PayU and Avenues Payment are already disrupting the market. However, all of them lack one thing – subscription-based recurring payments. And Stripe is a no match for recurring transactions.
Stripe processes billions of dollars every year and hold a credibility of some dozens of Fortune 500 companies including Twitter, Shopify, Lyft and Salesforce. The company currently operates in 25 countries and earns most of its profit by charging a fee on each transaction processed on the platform. The payment solutions expand to credit cards, debit cards and more.