Published: Sun, October 18, 2020
Economy | By

Stripe acquires Nigerian fintech company, Paystack, in deal reportedly worth 'over $200m'

Stripe acquires Nigerian fintech company, Paystack, in deal reportedly worth 'over $200m'

Stripe, American financial services, and online payment processing for internet businesses headquartered in San Francisco, California, United States, is in the process of acquiring Paystack, a Nigerian based online payment processing startup.

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.

The amount of the deal - subject to standard closing conditions, including regulatory approvals - was not disclosed.

That makes this the biggest startup acquisition to date to come out of Nigeria, as well as Stripe's biggest acquisition to date anywhere.

For Paystack, the deal will give the company a lot more fuel, to build out further in Nigeria and expand to other markets, its CEO, Shola Akinlade said in an interview.


According to techcrunch.com, Paystack prior to the deal had about 60,000 customers, including small businesses, larger corporates, fintechs, educational institutions, and online betting companies, and the plan will be for it to continue operating independently, the companies said. And even with larger global declines, online shoppers are growing twice as fast.

"In just five years, Paystack has done what many companies could not achieve in decades", said Matt Henderson, Stripe's business lead in EMEA. He pointed out that the company is thinking of "what the world will look like in 2040-2050". Paystack has only raised $11.5 million with the bulk of that investment coming from Stripe in a Series A round which it led in August 2018. Stripe thinks on a longer time horizon than others because we are an infrastructure company. "We can't wait to see what they will build next and how their growth can turbocharge the African tech ecosystem". Over time, its capabilities will be embedded in Stripe's 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", he added. "Leveraging Stripe's resources and deep expertise, we're excited to accelerate our geographic expansion and introduce more payment channels, more value-added services, and deeper integrations with global platforms".

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