American firm acquires Nigerian start-up, Paystack, for $200m

Paystack

Concretely, what Stripe has acquired is a base of approximately 60,000 customers, including small and large businesses, fintechs, institutions and online betting companies.

As per the company claims, The African internet economy is growing quickly, with online commerce in the region growing 21% year-over-year, 75% faster than the global average.

Paystack has also often been referred to as the "Stripe of Africa". Stripe is now valued at $36 billion.

Paystack said it now has around 60,000 customers across Africa, including small businesses, larger corporates, fintechs, educational institutions, and online betting companies.

Paystack's management confirmed that they would continue to operate as an independent entity.

Early in 2020, when American financial and SaaS company, Stripe announced that it had raised $600 million in funding, it stated clearly that the main objective of that round of funding was to expand its payment processing service into more countries.

Stripe Paystack Acquisition | Shola Akinlade and Ezra Olubi; Paystack founders
Stripe Paystack Acquisition | Shola Akinlade and Ezra Olubi; Paystack founders

In his reaction, Shola Akinlade, chief executive officer (CEO) of Paystack, said the company will be joining Stripe to accelerate online and offline commerce across Africa.

Stripe led an $8 million Series A funding round for Paystack in 2018. The company has raised over US$10-million from both global and local investors including Stripe, Visa, Tencent, Y Combinator, Comcast Ventures Catalyst Fund, Blue Haven Ventures and Ventures Platform. Although the terms of the deal have not been disclosed, TechCrunch reports that the deal is worth over $200M (€170.1M); making it the biggest startup acquisition to have occurred in Nigeria. And even with larger global declines, online shoppers are growing twice as fast. He pointed out that the company is thinking of "what the world will look like in 2040-2050". We will try to process as quickly as possible to protect the rights of the author.

Stripe - the $36B private payments firm - has the most ambitious mission statement of any startup: it wants to increase the GDP of the internet. "And I think about how over the next few years, there are going to be bigger exits because now it can be done".

Founded in 2015 by Shola Akinlade and Ezra Olubi, when Akinlade, while having fun, built a quick way of integrating a card transaction into a web page, Paystack now has around 60,000 customers.

Collison further noted that Stripe is planning for "a longer time horizon" than most other Fintech businesses.


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