Stripe Says It’s Worth 28% Less Now

Most recently valued at $95 billion, payments company Stripe has reduced the internal value of its shares by 28%.

That’s according to a Wall Street Journal report Thursday (July 14), which cited sources familiar with the matter. The company informed employees via email last week that its internal share price was around $29, versus the $40 from its last internal evaluation.

Read more: Stripe Valued At $95 Billion After New $600 Million Funding Round

One of the sources told the Journal the move reduced the implied valuation of Stripe’s shares. That valuation is determined separately from stock held by major shareholders.

In its email to employees, Stripe said its board approved the lower share price effective June 30, but did not explain its decision.

The report noted that this lower valuation is happening against the backdrop of an ongoing market selloff that has hampered private fundraising and led startups to cut costs and jobs. For instance, this week also saw delivery company Gopuff move to cut 10% of its workforce — about 1,500 people — and close 76 warehouses in response to signs that it grew too fast.

See also: Delivery Firm Gopuff Cuts 1,500, Closes Warehouses

Stripe reached its $95 billion valuation in March of last year after raising $600 million. At the time, it was Silicon Valley’s most valuable private company.

The company, which processes eCommerce payments, saw its fortunes blossom during the pandemic and the resulting online shopping explosion. More than 200,000 companies signed up for Stripe between the start of the pandemic and early 2021, with the company’s system processing more than 5,000 requests per second in 2020.

But as PYMNTS noted at the time, some investors were questioning the sustainability of rising valuations for tech companies, as inflation was even then on the rise and shaking up the American bond market.