Run the Numbers
Stripe, Klarna, & the Fintech Resurgence—What’s Driving Valuations?
Feb 22, 2025
Fintech is staging a major comeback, with Stripe's leap to an $85 billion valuation dominating discussions. The contrasting futures of Klarna and Chime are explored, debating who will emerge with the better IPO. Affirm's resurgence offers hope for the buy now, pay later model's longevity. Meanwhile, a significant trend of finance and HR integration is underway, highlighted by HiBob's acquisition of Mosaic. This convergence suggests a transformative shift in back-office software, creating a new unified source of truth.
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Quick takeaways
- Stripe's impressive valuation leap to $85 billion underscores the competitive dynamics and varying revenue multiples within the fintech sector.
- HiBob's acquisition of Mosaic marks a pivotal shift towards integrating HR and finance software, heralding a new era of operational efficiency.
Deep dives
Stripe's Valuation Insights
Stripe has recently seen its valuation soar to $85 billion, up from $70 billion, demonstrating its strong growth in the fintech space. With its revenue projected at around $4 billion and a growth rate in the high teens to low twenties, this growth enforces a forward revenue multiple of approximately 20x. The company's unique infrastructure and high-margin software combined with its payment processing capabilities create a significant competitive edge, solidifying its appeal to investors. In contrast, other competitors like Mercury, valued at $3 billion, with a lower revenue multiple of around 6x, highlight the varying valuations within the fintech sector and the factors that contribute to these discrepancies.
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