Shola Akinlade, Co-founder and CEO of Nigerian fintech company Paystack, announced via a blog post the official acquisition of the company by US fintech company Stripe. The acquisition is intended to help Paystack expand and consolidate Africa’s fragmented digital payments infrastructure.
According to TechCrunch, the deal is worth more than $200 million (estimated ₦77milion), making it the largest start-up acquisition in Nigeria, as well as Stripe’s biggest acquisition to date anywhere
For now, Paystack will continue to operate independently, growing their operations in Africa and adding more international payment methods. Over time, Paystack’s API will be embedded in Stripe’s Global Payments and Treasury Network (GPTN).
The deal underscores two interesting points about Stripe, now valued at $36 billion and regularly tipped as an IPO candidate. (Note: It has never commented on those plans up to now.) First is how it is doubling down on geographic expansion: Even before this news, it had added 17 countries to its platform in the last 18 months, along with progressive feature expansion. And second is how Stripe is putting a bet on the emerging markets of Africa specifically in the future of its own growth.TechCrunch
Paystack is a technology company powering growth for businesses in Africa through our collection of secure payment tools. Over 60,000 businesses of all sizes use our suite of Collections, Disbursements, Identity Verification, Reporting, and Commerce tools to grow their business across the continent, including FedEx, UPS, MTN, the Lagos Internal Revenue Service, and AXA Mansard. Merchants already use our technology to process hundreds of millions of dollars each month, and joining forces with Stripe will supercharge our ability to serve our community of makers and help more businesses across the continent.Shola Akinlade’s blog post
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 moveShola Akinlade to Techcrunch