Digital payments firm Stripe has cut the internal value of its shares by about 11 percent, implying a valuation of $63 billion, the Information reported on January 12.
As per the report, it's at least the third time since June that Stripe has cut its internal valuation, following a smaller cut in October. This brings the total reduction to about 40% in the past six months.
Moneycontrol could not independently verify the report.
US fintech stocks have performed worse than financial and technology companies in the past year amid tightening of monetary policies by various major central banks leading to worries of a looming recession.
The impact also spilled over into the venture capital market, where jittery investors concerned about overpaying have avoided signing big checks for startups.
Also read | In Pics: A look at tech firms laying off their workforce in 2022
In November last year, Stripe had cut its headcount by about 14% to 7,000, saying that the payments startup had overhired and grew operating costs too quickly.
The layoffs came months after Stripe had cut its valuation by 28 percent, reports stated.
Also read: Digital payments firm Stripe to lay off 14% of workforce
Even though the fintech continues to face job cuts and wealth depletion, it is known to be among the most highly-valued 'unicorns' in the world. The online payment company raised $600 million in funding in March 2022 to reach a total valuation of $95 billion.
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