American Financial Services Company, Stripe has entered into an agreement to purchase Paystack, a Lagos based technology company which aids all sorts of companies to receive payments globally.
The $200 million purchase which is the biggest fintech acquisition in Nigeria’s history is intended to help increase the growth of Africa’s GDP.
The two companies have been working together for some time as, Stripe led Paystack’s Series A funding round in 2018. This is said to have provided ongoing guidance as the company rapidly grew.
However, Paystack is expected to continue independent operations while expanding their reach across the continent and including other international payment options.
In due time, the company’s features will be imbibed in Stripe’s Global Payments and Treasury Network (GPTN).
GPTN is a programmable platform for global money transfers which runs across 42 countries.
Stripe’s Business Lead in Europe, the Middle East and Africa (EMEA), Matt Henderson noted that this acquisition will give Paystack the needed resources to develop new products, support more businesses and consolidate the “hyper-fragmented African payment market”.
He expressed high expectations of what product the company will design next.
Meanwhile, Chief Executive Officer (CEO) and co-founder of Paystack, Shola Akinlade said her company is excited about increasing their geographic expansion while leveraging on Stripe’s resources and deep expertise.
The CEO said the mission and values of the buyer is in line with theirs.
The acquisition is subject to standard closing conditions, including regulatory approvals.
About Paystack
Paystack is a Nigerian fintech startup solving payments problems for businesses. According to them, their mission is “to help businesses in Africa become profitable, envied, and loved”.
The company raised its initial $1.3 million seed funding from both international and homegrown investors.
The product of founders, Ezra Olubi and Shola became the first Nigerian tech startup to be accepted into the world-famous Y Combinator program, based in Silicon Valley.
They obtained an initial $120,000 seed funding and further technical advice at the program.
Currently, more than 60,000 businesses in Nigeria and Ghana use Paystack to securely collect online and offline payments, launch new business models and deepen customer relationships.
The platform already processes more than half of all online transactions in Nigeria. Paystack recently started a pilot with businesses in South Africa as part of its ambitious plans to expand.
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