Lagos-based Paystack acquired by Stripe for $200Million

Andrew Cummings
October 18, 2020

Nigerian fintech startup, Paystack has been acquired by Stripe, a U.S. fintech company that offers similar payment gateways service for companies and businesses.

The acquisition, which media reports said was worth some $200 million, reflects the growing online commerce market in Nigeria and across sub-Saharan Africa.

"In absolute numbers, Africa may be smaller now than other regions, but online commerce will grow by around 30% each year".

However, this is not Stripe's first contact with Paystack.


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

Paystack is a technology company fueling the growth of businesses in Africa through the use of highly secured payment tools.

According to techcrunch.com, Paystack prior to the deal had about 60,000 customers, including small businesses, larger corporates, fintechs, educational institutions, and online betting companies, and the plan will be for it to continue operating independently, the companies said.

In a video share, Paystack CEO and co-founder Shola Akinlade publicly shared the news.


Paystack is a tech company that provides a quick way to integrate payments services into an online or offline transaction by way of an API. Paystack has only raised $11.5 million with the bulk of that investment coming from Stripe in a Series A round which it led in August 2018. We will try to process as quickly as possible to protect the rights of the author. He also indicated that the pace of online shoppers in Africa was growing at twice the rate for the rest of the world, further highlighting an important aspect of why the deal made sense. Help people start and scale internet businesses, increase the gross domestic product (GDP) of the internet. He pointed out that the company is thinking of "what the world will look like in 2040-2050". "And I think about how over the next few years, there are going to be bigger exits because now it can be done".

The technology company Stripe builds economic infrastructure for the internet.

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.


Other reports by iNewsToday

FOLLOW OUR NEWSPAPER