NIGERIA – Global payment services company Stripe has acquired Paystack – a Nigerian fintech startup- in a landmark deal that could potentially be the largest in the African startup industry to date.
According to sources privy to the deal, Paystack may have been acquired by the American based payment solutions provider for more than US$200 million.
Launched in January 2016 by Shola Akinlade and Ezra Olubi, Paystack is a payments company that helps businesses in Africa get paid by anyone, regardless of their location in the world.
The startup processes over 50 percent of all web payments in Nigeria, powering payments for over 60,000 organisations, including FedEx, UPS, MTN, and many others.
The company has now been acquired by Stripe, which led Paystack’s US$8 million funding round back in 2018.
Stripe’s payments software is used by customers including Amazon, Google, Shopify and Zoom, and its acquisition of Paystack is the latest move in its international expansion.
Paystack will be Stripe’s catalyst for growing internet commerce in Africa, with the Lagos-based startup having plans to expand across the continent, starting with a pilot in South Africa.
“In just five years, Paystack has done what many companies could not achieve in decades. This acquisition will give Paystack resources to develop new products, support more businesses and consolidate the hyper-fragmented African payments market.”Matt Henderson, Stripe’s business lead in Europe Middle East and Africa.
Despite of its acquisition, Paystack will continue to operate independently, growing its operations in Africa and adding more international payment methods.
Over time, Paystack’s capabilities will however, be embedded in Stripe’s Global Payments and Treasury Network (GPTN), a programmable platform for global money movement that currently spans 42 countries.
“Paystack is a growth engine for modern businesses in Africa, and we couldn’t be more excited to join forces with Stripe, whose mission and values are so aligned with ours, to nurture transformative businesses on the continent,” Shola Akinlade said.
The acquisition of the Nigerian startup will now be subjected to standard closing conditions, including regulatory approvals.
“We can’t wait to see what they will build next and how their growth can turbocharge the African tech ecosystem,” Stripe’s business lead in Europe Middle East and Africa Matt Henderson said.
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