Stripe Acquires Paystack for $200M+, the Biggest Ever Startup Acquisition in Nigeria

Daniel Fowler
October 18, 2020

Founded by Shola Akinlade and Ezra Olubi, Paystack has been operating in Nigeria since 2015, providing payment solutions to small businesses, larger corporates, fintech, online betting companies, educational institutions in the country.

"In absolute numbers, Africa may be smaller now than other regions, but online commerce will grow by around 30% each year".

The acquisition is subject to standard closing conditions, including regulatory approvals, the companies said.

"Paystack was not for sale when Stripe approached us".

Over 60,000 businesses in Nigeria and Ghana have reportedly been using Paystack to handle both online and offline payments.

"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", says Shola Akinlade, CEO and co-founder of Paystack.

According to Patrick Collison, the co-founder and CEO of Stripe, the acquisition of Paystack is an enormous opportunity.

Stripe acquires Nigerian fintech startup, Paystack for over $200 million

Paystack will continue to operate independently, growing their operations in Africa and adding more global payment methods. He also indicated that the pace of online shoppers in Africa was growing at twice the rate for the rest of the world, further highlighting an important aspect of why the deal made sense.

The statement described Stripe as a technology company that builds economic infrastructure for the Internet.

In 2018, the US-based payments company led the Series A funding that raised $8 million for Paystack alongside global payments company, Visa, US-based accelerator, Y Combinator, and Chinese tech giant, Tencent.

We wait to see how this all plays out. Over time, Paystack's capabilities will be embedded in Stripe's Global Payments and Treasury Network (GPTN), a programmable platform for global money movement that now spans 42 countries.

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.

"We believe deeply that with the right tools, African creators, developers, and entrepreneurs can do incredible things". I'm driven by the mission to accelerate payments on the continent, and I am convinced that Stripe will help us get there faster.

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