Economy

American firm acquires Nigerian start-up, Paystack, for $200m

American firm acquires Nigerian start-up, Paystack, for $200m”

Payments platform Stripe has acquired Nigeria-based Paystack, which is a startup that aims to make it easier to integrate various payment services.

While the terms of the deal are not in the open, sources familiar with the deal said Stripe is paying over $200 million to acquire the Nigerian startup.

He added that he believes the potential of Africa's e-commerce market "In absolute numbers, Africa may be smaller right now than other regions, but online commerce will grow about 30% every year".

It is for this reason that Paystack has been regularly nicknamed the "Stripe of Africa".

In April, Stripe raised $600 million from investors including Andreessen Horowitz, General Catalyst and Sequoia Capital that valued the company at $36 billion.

Paystack presently has about 60,000 customers that cut across small businesses, fintechs, schools, online betting companies and larger corporations.

Paystack will continue to operate independently, growing their operations in Africa and adding more worldwide payment methods.

"Paystack was not for sale when Stripe approached us", Akinlade, who co-founded the company with Ezra Olubi, said.

More news: Liverpool owner to take Fenway Sports public through merger with RedBall

Paystack is now processing over half of all digital or online transactions made in Nigeria.

"Both companies are really, really aligned".

The Africa opportunity is particularly attractive, with the continent's internet economy growing 21% YoY, 75% faster than the global average per Stripe. He pointed out that the company is thinking of "what the world will look like in 2040-2050".

Stripe - the $36B private payments firm - has the most ambitious mission statement of any startup: it wants to increase the GDP of the internet.

The partnership between Paystack and Stripe has been a work in progress, given their close cooperation and being members of the Y Combinator accelerator program and leading their Series A funding round in 2018. "And I think about how over the next few years, there are going to be bigger exits because now it can be done".

Collison further noted that Stripe is planning for "a longer time horizon" than most other Fintech businesses.

However, co-founder John Collison recently dampened speculation about an imminent flotation when he said that the company's hiring of new chief financial officer Dhivya Suryadevara did not mean Stripe was preparing for an IPO.



Like this

loading...
loading...

Latest


17 October 2020
Five EU states urge a halt to settlements in occupied lands
Several hundred of the homes were already constructed and were approved retroactively. It said around 2,000 more homes were expected to be approved on Thursday.

17 October 2020
Defensive Trump courts voters in two must-win states
He also offered an optimistic assessment of the pandemic, even as a surge of new infections spread across America. The remarks quickly picked up steam online with Democrats and anti-Trump Republicans sharing video of the speech.

17 October 2020
'Good old days of segregation' comment was sarcasm: Graham
Released Thursday, the poll of 605 likely voters taken from October 9-15 showed Graham leading with a 46% to Harrison's 40%. Graham announced he brought in $28 million, which is the largest amount raised by a senator.

17 October 2020
Carr criticizes Cuomo for coronavirus restrictions targeting Orthodox Jews
He says he expects "micro cluster" outbreaks of the virus to flare up for at least another year, even after there is a vaccine. Out of the 133 thousand tests processed statewide the infection rate was 1.09%, but in the red zones, the positivity is 4.84%.

17 October 2020
Cincinnati's positive COVID tests postpone Tulsa game
Tulsa has had three games postponed, including its opener against Oklahoma State, which it was able to make up. The AAC also announced the conference title game will be held on either December 12 or December 19.

17 October 2020
Netizens Clash Online as Senate Confirmation Hearings for Barrett Go On
At age 48, she would also be the youngest member of the nine-justice bench and likely serve for the decades to come. Harris' comments largely mirrored her messaging on the campaign trail as the Democratic vice presidential nominee .

17 October 2020
New Zealand: Jacinda Ardern's Labour Party wins landslide | DW
Doors to the polling booths opened at 9:00am, though a record number of voters had already cast their ballots in advance. The pandemic is just one of a string of crises that showed Ardern's leadership qualities during a torrid first term.

17 October 2020
Destiny 2: Beyond Light Next-Generation Upgrades Arrive in December
More details on this will be available closer to launch, as Bungie is now testing the settings to ensure a smooth performance. Players who have the current-generation version of Destiny 2 are eligible for the next-generation upgrade at no extra cost.

17 October 2020
EPL: Ighalo battle-ready for Newcastle United clash
However, United need another win on the road to offer the flawless response to the defeat to Tottenham last time out. "We've been training hard".

17 October 2020
Kim Kardashian is now richer than Kylie Jenner
Anyway, fast forward to the latest episode, and it looks like things are still pretty awkward between them. "I love my sister". Kendall was not satisfied with this argument and returned to the charge: "You're in the fight, Corey".