Paystack, a startup out of Lagos has just been acquired by Stripe. PayStack, like Stripe, provides a way of integrating financial payments services online or offline transaction by the use of an API. Earlier this year, Stripe announced that they had gotten extra funding worth $600 million and that a major reason they got the funding was to expand its API-based payments services into more regions.
Paystack has more than 50,000 customers that is made up of large organizations, small businesses, educational institutes, online betting companies etc. While there is plan for PayStack to continue operating independently, the terms of the deal with Stripe were not disclosed. Paystack CEO Shola Akinlade in an interview said the deal will give the company a lot more fuel (that is, investment) to build out further in Nigeria and expand to other markets.
This acquisition is the biggest startup acquisition in Nigeria till date, as well as that of Stripe. This is different from other Stripe acquisitions as this acquisition expands the company global footprint. Stripe is currently valued at $36 billion and regularly tipped as an IPO candidate and has added more than 15 countries to its platform in the last one and a half year.
Akinlade, PayStack co-founder and Ezra Olubi PayStack Chief Technology Officer believes Stripe will help their company reach its mission faster and that it is a natural move. Paystack had been on Stripe’s radar for some time before the acquisition.
Stripe’s co-founder and CEO Collison, said this is an enormous opportunity and that when they invest in startups do not tie down those startups with complicated strategic investments and that they try to understand the broader ecosystem and keep their eyes pointed outwards and see where Stripe can help them. Stripe CEO also said a lot of companies are heavily influenced by Stripe