Stripe to acquire Nigeria's Paystack in Africa push

  • Stripe to acquire Nigeria's Paystack in Africa push

Stripe to acquire Nigeria's Paystack in Africa push

U.S. fintech leader Stripe said on Thursday that it is acquiring Paystack, a Nigerian payments start-up, as it looks to grow its footprint across the African continent.

The acquisition, which media reports said was worth some $200 million, reflects the growing online commerce market in Nigeria and across sub-Saharan Africa.

Five years later, the company has attracted a buyer who has seen the company's potential as it tries to expand into other regions of Africa.

"This acquisition is the culmination of a close partnership between Stripe and Paystack over the last several years".

In April, Stripe raised $600 million from investors including Andreessen Horowitz, General Catalyst and Sequoia Capital that valued the company at $36 billion. Over 60,000 Nigerian and Ghanaian businesses have used Paystack to secure online and offline payments, launch new business models and strengthen customer relationships.

"Paystack will continue to operate independently, and there will be no disruption of service as a result of this acquisition", Akinlade said. The company has raised over US$10-million from both worldwide and local investors including Stripe, Visa, Tencent, Y Combinator, Comcast Ventures Catalyst Fund, Blue Haven Ventures and Ventures Platform. The deal is subject to standard closing conditions, including regulatory approval.

Patrick Collison, Stripe's co-founder and CEO, said that the acquisition would help Stripe expand to other geographics. We will try to process as quickly as possible to protect the rights of the author. And even with larger global declines, online shoppers are growing twice as fast. "And I think about how over the next few years, there are going to be bigger exits because now it can be done". He pointed out that the company is thinking of "what the world will look like in 2040-2050".

Founded in 2015 by Ezra Olubi and Shola Akinlade, the African company makes it easy for online merchants of all sizes to accept a wide range of payment methods.

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

Stripe led an $8 million Series A funding round for Paystack in 2018 and has now chose to buy the Nigerian outfit to take advantage of a market that has huge potential, with online commerce on the continent growing at 21% year-over-year.