![\"\"](\"https:\/\/aqqute.wordpress.com\/wp-content\/uploads\/2024\/03\/73f19-images-13-idorenyin.jpeg?w=300&h=157\")
<\/p>\n<\/p>\n
When Stripe announced <\/span>earlier this year<\/span><\/a> 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. Today the company is coming good on that plan in the form of some M&A<\/span><\/p>\n Stripe is acquiring Paystack, a startup out of Lagos, Nigeria that, like Stripe, provides a quick way to integrate payment services into an online or offline transaction by way of an API. (We and others have referred to it in the past as \u201cthe Stripe of Africa.\u201d)<\/span><\/p>\n Paystack currently has around 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.<\/span><\/p>\n Terms of the deal are not being disclosed, but sources close to it confirm that it\u2019s over $200 million. That makes this the biggest startup acquisition to date to come out of Nigeria, as well as Stripe\u2019s biggest acquisition to date anywhere. (Sendwave, acquired by WorldRemit in a $500 million deal in August, is based out of Kenya.)<\/span><\/p>\n It\u2019s also a notable shift in Stripe\u2019s strategy as it continues to mature: Typically, it has only acquired smaller companies to expand its technology stack, rather than its global footprint.<\/span><\/p>\n 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 <\/span>progressive feature expansion<\/span><\/a>. And second is how Stripe is putting a bet on the emerging markets of Africa specifically in the future of its growth.<\/span><\/p>\n \u201cThere is enormous opportunity,\u201d said Patrick Collison, Stripe\u2019s co-founder and CEO, in an interview with TechCrunch. \u201cIn absolute numbers, Africa may be smaller right now than other regions, but online commerce will grow about 30% every year. And even with wider global declines, online shoppers are growing twice as fast. Stripe thinks on a longer time horizon than others because we are an infrastructure company. We are thinking of what the world will look like in 2040-2050.\u201d<\/span><\/p>\n For Paystack, the deal will give the company a lot more fuel (that is, investment) to build out further in Nigeria and expand to other markets, CEO Shola Akinlade said in an interview.<\/span><\/p>\n \u201cPaystack was not for sale when Stripe approached us,\u201d said Akinlade, who co-founded the company with Ezra Olubi (who is the CTO). \u201cFor us, it\u2019s about the mission. I\u2019m 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 move.\u201d<\/span><\/p>\n Paystack had been on Stripe\u2019s radar for some time before acquiring it. Like its U.S. counterpart, the Nigerian startup went through Y Combinator \u2014 that was in 2016, and it was the first-ever startup out of Nigeria to get into the world-famous incubator. Then, in 2018, Stripe <\/span>led an $8 million funding round<\/span><\/a> for Paystack, with others participating, including Visa and Tencent. (And for the record, Akinlade said that Visa and Tencent had not approached it for acquisition. <\/span>Both<\/span><\/a> have been <\/span>regular investors<\/span><\/a> in startups on the continent.)<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" 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. Today the company is coming good on that plan in the form of some M&A Stripe is acquiring Paystack, a startup …<\/p>\n","protected":false},"author":1,"featured_media":1212,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-1211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/posts\/1211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/comments?post=1211"}],"version-history":[{"count":0,"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/posts\/1211\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aqqute.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/media?parent=1211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/categories?post=1211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/tags?post=1211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}