Stripe Inc. acquires Nigerian startup Paystack for $200 Million

Bloomberg | Stripe Inc. is acquiring Nigerian online payments processing startup, Paystack to jump-start its expansion in Africa.

The U.S. payment-services giant will pay US$200 million to acquire the Lagos-based group, according to a person familiar with the terms. Shola Akinlade, Paystack’s co-founder and chief executive officer, confirmed the acquisition in a blog post Thursday, adding that the deal is pending regulatory approval.

“Paystack will continue to operate independently, and there will be no disruption of service as a result of this acquisition,” Akinlade said. Merchants and partners can “look forward to more payment channels, more tools, accelerated geographic expansion, and deeper integrations with global platforms.”

Stripe has led previous Paystack funding of about US$10 million. Other investors include Visa Inc, Tencent Holdings Ltd., Y Combinator, and Comcast Ventures Catalyst Fund.

In April, Stripe raised US$600 million from investors including Andreessen Horowitz, General Catalyst and Sequoia Capital that valued the company at US$36 billion. That makes it one of the most valuable startups in the U.S., according to CB Insights. Stripe has been in growth mode during the global pandemic and expanded to five new European markets in May, making it a top candidate to eventually go public.

Paystack, headquartered in Lagos, Nigeria, was co-founded in 2015 by Nigerian software developers and longtime friends, Shola Akinlade and Ezra Olubi.

Watch Paystack is joining Stripe: