US tech giant, Stripe acquires Nigeria’s Paystack for '$200 million'

Paystack, a startup company founded by two young Nigerians has been acquired by American financial services giant Stripe.

The fintech company was founded by Shola Akinlade and Ezra Olubi, two young Babcock University graduates, came on board four years ago.

Stripe said it acquired Paystack to expand into the fast-growing online market in Africa.

Paystack provides a quick way to integrate payments services into an online or offline transaction by way of an API.

The acquisition, reportedly worth $200 million, further deepens the growing interests of fintech giants in the ever-expanding online commerce sector of Nigeria and Africa at large.

”In order to help increase Africa’s online GDP, Stripe has entered into an agreement to acquire Paystack, a technology company based in Lagos that makes it easy for organizations of all sizes to collect payments from around the world,” a statement on Stripe’s website read.

“In just five years, Paystack has done what many companies could not achieve in decades. Their tech-first approach, values, and ambition greatly align with our own.”

Stripe’s business lead in EMEA, Matt Henderson further added that “This acquisition will give Paystack resources to develop new products, support more businesses, and consolidate the hyper-fragmented African payments market.”

Group photo Stripe and Paystack

Paystack was founded in 2015 and has more than 60,000 businesses in Nigeria and Ghana using it to securely collect online and offline payments, launch new business models and deepen customer relationships.

”Paystack today is 114 friends of 12 nationalities, currently working remotely across 9 countries,” Shola Akinlade, Paystack co-founder, and CEO assured customers.

“What happens next is that we go right back to work because there is so much that we can fix and improve in Africa’s financial infrastructure.”

Stripe is reportedly valued at $36 billion, according to investor website PitchBook.

The deal makes it the biggest startup acquisition to date to come out of Nigeria, as well as Stripe’s biggest acquisition to date anywhere. 

Paystack was founded by Shola Akinlade and Ezra Olubi.

“Paystack was not for sale when Stripe approached us,” said Akinlade, who is the CEO.

“For us, it’s about the mission. I’m driven by the mission to accelerate payments on the continent, and I am convinced that Stripe will help us get there faster. It is a very natural move.”

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