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: Netizens Clash Online as Senate Confirmation Hearings for Barrett Go On

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
United Kingdom must prepare for ‘no deal’ Brexit, says PM Boris Johnson
"The EU have effectively ended them, and only if the EU fundamentally changes its position will it be worth talking". Simon Coveney said he believed an agreement would be made, despite the two sides being "miles apart" on fisheries.

17 October 2020
Iran registers 4,552 new COVID-19 cases, 522,387 in total
The country recorded historic highs in daily deaths three times this week, including Wednesday, The Associated Press reported. Lately reopened universities and faculties, in addition to libraries, mosques, cinemas, museums and wonder salons, shut down.

17 October 2020
Everton 2-2 Liverpool: 'Toffees lucky but show grit in draw'
Liverpool were smashed 7-2 by Aston Villa in their last game before the global break, but started like a side keen to make amends. The Reds were able to get another goal, thanks to Mohamed Salah 's brilliantly struck half-volley in the second half.

17 October 2020
Barca coach Koeman: I'll play Griezmann where I want
But Leo has been playing a very tight schedule for many years. "He is a player who if he does not play is more exhausted . Barcelona will aim to return to winning ways when they play Getafe in La Liga 2020-21 on October 18 (Sunday).

17 October 2020
Moon Expects Local COVID-19 Treatments to Be Available by Year-End
Johnson & Johnson said last month that its goal was to seek an emergency use authorization approval in early 2021. The company was hoping to enroll 60,000 volunteers to test this vaccine.

17 October 2020
Your blood type may determine how sick you get from COVID
This means that it's not clear how the relationship between blood type and Covid-19 works and any link may be coincidental. Researchers in Denmark find fewer coronavirus patients have O blood compared to those with A, B, and AB blood.

17 October 2020
How to Download Call of Duty: Black Ops Cold War Beta
Look for for Black Ops Cold War and search for the solution labeled "Contact of Responsibility: Black Ops Chilly War Open Beta". Having said that, in advance of you continue, look at when the Contact of Duty: Black Ops Chilly War Open Beta will start.

17 October 2020
Disney issues racism warning for several classic movies
In addition to this, the cat "sings in poorly accented English voiced by a white actor and plays the piano with chopsticks". The advisory isn't new, according to Disney , but it's now been updated and strengthened for that film and others.

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
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".