US-based payments giant, Stripe, has been acquired Nigerian payments startup, Paystack.
According to a source, this deal is rumoured to be around $200 million.
Founded in 2015 by Shola Akinlade and Ezra Olubi, Paystack sought to solve the challenge of online payment transactions in Nigeria.
By seamlessly connecting all multi-channel payment options with merchants across the country, it enabled them to accept payments from around the world, via credit card, debit card, and direct bank transfer on web and mobile.
This got the one-year-old startup into US-based seed-stage accelerator, Y Combinator where it received $120k in funding and access to global investors.
Later that year, it raised a seed funding of $1.3 million from Tencent, Comcast Ventures, Singularity Investments, Michael Seibel, Justin Kan, Jason Njoku’s SPARK.ng, Olumide Soyombo among other investors.
In 2018, however, Paystack raised $8 million in Series A funding. With participation from global payments company- Visa, US-based accelerator, Y Combinator, and Tencent, Stripe, a similar payments company was said to have led the round.
Three years after launching, the company’s total funding was put at a little over $10 million. Since then, the company, it was learnt, has not raised a follow-up round.
Meanwhile, Paystack now has more than 60,000 businesses using its platform as it looks to expand beyond Nigeria and Ghana where it currently operates.
In the meantime, Stripe raised $600 million at a $36b valuation earlier this year in April. And according to the founders, the company was looking to continue investing in product development, further global expansion and strategic initiatives.
The billion-dollar startup, it was learnt, has been strategically investing in similar startups around the world. Having invested in Paystack (Africa) two years ago, it recently invested in Paymongo, a payments startup in the Philippines (Asia) last month.
Reports further suggest that while this is the biggest acquisition deal to come out of sub-Saharan Africa and Stripe’s largest acquisition till date, both companies will continue to operate independently.