Square is raising a fresh $100 million of funding at a $6 billion valuation, injecting new cash into a company facing challenges from rivals including Amazon.
It’s unclear whether the round has closed and who the lead investors would be in the deal, but CEO Jack Dorsey authorized the round of Series E stock at a valuation of $15.46 a share, based on a filing from Sept. 8 discovered by VC Experts. Square is offering the investor preferred stock that will give them the chance to get their money back first in the event of a sale.
Square spokesperson Aaron Zamost declined to comment on the funding round.
The company had raised $200 million in Sept. of 2012 at a $3.25 billion valuation and had reportedly reached a $5 billion valuation earlier this year in a debt financing for another $100 million reported in April. Investors include Morgan Stanley, Goldman Sachs, Citi Ventures, Rizvi Traverse Management and earlier investors like Kleiner Perkins Caufield & Byers, Tiger Global, Khosla Ventures and Sequoia Capital.
But Square is facing increasing competition to critical areas of its business, including a recent push by Jeff Bezos’ Amazon, which announced a new mobile credit card reader in August. And Apple recently announced Apple Pay, its ownpush into mobile payments that could further challenge Square’s business down the line.
In May, Square launched Square Capital, a program to issue cash advances to small businesses using its system that would provide a cash advance for a set fee and then recoup the money through deductions from daily sales on its system. Square Capital is one of several efforts the company’s made to diversify from its physical readers, which have become a common site in coffee shops and other small vendors but reportedly make the the company little, if any, profit.
The company also acquired a food delivery service, Caviar, over the summer.
Now Square’s bought itself more time to figure out its next move through some new capital of its own.