Stripe’s Valuation Raised by Fidelity While Instacart Was Cut Again

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  • Fidelity boosted its valuation of Stripe by 15% in a single month.
  • The valuation boost comes after multiple months in which Fidelity cut the fintech’s valuation.
  • Fintechs are broadly experiencing a slump as investors pump the brakes on fundraising.

After slashing Stripe’s valuation in consecutive months earlier this year, Fidelity is now boosting the payment processor’s value by 15%, according to recent filings.

Fidelity, which invests in privately-held Stripe through several different mutual funds, including its massive Contrafund, marked up the value of its holdings in the company to $36.96 per share at the end of March, the asset manager’s most recent filing date.

Fidelity cut Stripe’s valuation to $36.25 a share at the end of January and then again to $32.20  at the end of February — a 23% decline from the $41.81 share price at the beginning of 2022.

Stripe did not immediately respond to a request for comment.

The asset manager’s recent Stripe valuation is still 8% less than what it was last March, when the startup raised $600 million in its Series H financing round at a valuation of $95 billion. Fidelity was an investor in the round.

Fidelity declined to comment on the reasons for its markup. The increase is also out of step with the rest of the fintech industry, which over the last year and a half, has been plagued by plummeting share prices and uncertainty in the tech sector.

It’s also a tougher fundraising environment for young companies — a stark contrast from the funding bonanza founders enjoyed over the last year.

Fellow


fintech companies

like Robinhood and Fast have faced problems in recent weeks, with the latter — which is backed by Stripe — announcing in early April that it was shutting down after raising more than $120 billion.

Publicly-traded companies similar to Stripe have continued to struggle on the public market. PayPal’s share price has dropped 60% in the last six months, fellow payments company Block — founded by Jack Dorsey and formerly known as Square — has seen its share price drop 58%, and fintech Affirm’s share price has dropped 81% in that time. 

Fidelity also marked down the valuation of grocery delivery company Instacart, slashing its previous month’s valuation to $70.82 from $102.14 per share. In March, Instacart cut its own valuation by almost 40% to $24 billion from the $39 billion it was valued at in March 2021.



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