Shopify reportedly invests in Stripe, bringing total stake to over $350 million
Shopify has reportedly invested in San Francisco-based FinTech startup Stripe, which processes payments for e-commerce businesses.
According to The Wall Street Journal, Shopify, Capital Group, Sequoia Capital, Silver Lake, and others invested about $1 billion USD in Stripe, after the FinTech firm recently gave investors the opportunity to acquire significant stakes in the company from existing shareholders, including current and former Stripe employees. The Journal reports these bids exceeded $4 billion, but only $1 billion were filled through the tender offer, which closed last month.
For Shopify, which has previously partnered with Stripe, the reported investment comes as the Canadian retail tech firm has ramped up its strategic investment efforts. Earlier this year, Shopify put capital into Vancouver-based FinTech startup Bench and Toronto same-day delivery firm Swyft.
In December, Shopify partnered with Stripe and Evolve Bancorp to power two products within its Shopify Balance small business banking offering, which it first unveiled in May 2020. According to The Journal, to date, Shopify has invested over $350 million in Stripe. In May, The Globe and Mail reported that in Q1, Shopify invested $200 million in an unidentified “private company that is a partner in its ecosystem.” Sean Silcoff of The Globe wrote on Twitter that “according to the WSJ, that co is Stripe – and the amount is even higher.”
