Investment
Stripe Acquires Nigeria’s Paystack for $200M+ to Expand into the African Continent By Ingrid Lunden
WHEN STRIPE ANNOUNCED EARLIER this year that it had picked up another $600 million in funding, it said one big reason for the funding was to expand its API-based payments services into more geographies. Now the company is coming good on that plan in the form of some M&A. Stripe (https://stripe.com) is acquiring Paystack (https:// paystack.com), a startup out of Lagos, Nigeria that, like Stripe, provides a quick way to integrate payments services into an online Ezra Olubi and Shola Akinlade sold their fintech company for over $200 or offline transaction by way of million. an API. (We and others have Photo credit: Nairametrics Source: UGC referred to it in the past as “the Stripe of Africa.”) Paystack currently has around 60,000 customers, smaller companies to expand its technology stack, including small businesses, larger corporates, rather than its global footprint. The deal underscores two interesting points fintechs, educational institutions and online betting companies, and the plan will be for it to continue about Stripe, now valued at $36 billion and regularly tipped as an IPO candidate. (Note: It has never operating independently, the companies said. Terms of the deal are not being disclosed, but commented on those plans up to now.) First is sources close to it confirm that it’s over $200 million. how it is doubling down on geographic expansion: That makes this the biggest startup acquisition to Even before this news, it had added 17 countries date to come out of Nigeria, as well as Stripe’s to its platform in the last 18 months, along with biggest acquisition to date anywhere. (Sendwave progressive feature expansion. And second is how (www.sendwave.com), acquired by WorldRemit Stripe is putting a bet on the emerging markets of (www.businesswire.com/news/home/20200825005820/en/ Africa specifically in the future of its own growth. WorldRemit-to-Acquire-Sendwave) in a $500 million “There is enormous opportunity,” said Patrick deal in August, is based out of Kenya.) Collison, Stripe’s co-founder and CEO, in an It’s also a notable shift in Stripe’s strategy as it interview with TechCrunch (https://techcrunch.com). continues to mature: Typically, it has only acquired “In absolute numbers, Africa may be smaller right 60
November-December 2020
DAWN
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