Stripe, the billion dollar payment processing company is preparing to get ready to IPO soon, according to people familiar with the matter.
Stripe announced on Wednesday that it will process payments for Salesforce’s new commerce service unveiled as part of its new enterprise-customer suite, Digital 360. Under the terms of the partnership, big Salesforce customers using the CRM giant’s new-look software tools will have the option to set up their payments-processing for ecommerce through Stripe.
In an interview, Stripe cofounder John Collison said the partnership with Salesforce was a key milestone in the company’s more recent push toward large-sized customers. He also pointed to recent results from research firm Forrester, which placed Stripe first among global payments providers in a new report. “We are operating at a very large scale now, where we are serving merchants at every end of the spectrum,” Collison said. “As you reach scale, you have to meet the customers where they are.”
The partnership is the latest step for Stripe in what appears to be a march toward the public markets. The company recently hired Mike Clayville, who previously led commercial sales teams at Amazon Web Services, as chief revenue officer. And in August, it hired Dhivya Suryadevara as chief financial officer, a role she previously held at General Motors.
Hiring executives to fill such positions from big-company backgrounds is a common later-stage step for a software business nearing the IPO on-ramp. Collison and his brother, Patrick, launched Stripe in 2010 and quickly appealed to other startups in their Y Combinator class. In September, Stripe was valued at $36 billion after raising $250 million from investors including General Catalyst, Sequoia, and Andreessen Horowitz. It employs 3,000 people.
This year, Stripe has been riding a tailwind of demand for payments services as more businesses have been forced online and major companies have increasingly pursued sales in the cloud. Stripe now has 40 companies processing $1 billion in payments over its platform annually, Collison said, including Slack, Wayfair and Zoom.
While Stripe has a number of other partnerships, including with DocuSign, Shopify and SurveyMonkey, working with Salesforce comes with its own signals in the cloud. And Stripe, by announcing the partnership alongside the news it has placed ahead of European rival Adyen on research firm Forrester’s Wave rankings, clearly sees Salesforce’s blessing as part of a bigger story it eagerly wants to tell: Stripe is more than just a company for other tech hotshots to use.
We asked if the partnership with Salesforce and recent hires are indicators that Stripe is approaching the public-company onramp, Collison smiled. “You’re not the first to point that out,” he says. Beyond that, the 30-year-old whose stake in Stripe has already made him a multi-billionaire will leave the assumptions to others. “We have no plans to go public. We are not in a rush to do so,” Collison added.