With the African internet economy and online commerce rapidly growing 75% faster than the global average, technology company Stripe has entered into an agreement to acquire Lagos-based technology company Paystack.
Details of the terms of the deal remain fuzzy Thursday night, but Tech Crunch reports that the deal is "worth over $200 million".
"This acquisition is the culmination of a close partnership between Stripe and Paystack over the last several years". Stripe is now valued at $36 billion.
Paystack is used by more than 60,000 businesses in Nigeria and Ghana to collect online and offline payments, with Paystack processing over half of all online transactions in Nigeria.
With their capabilities embedded in Stripe's Global Payments and Treasury Network (GPTN), Paystack will continue operating independently, growing their operations in Africa and adding more worldwide payment methods.
Paystack is now processing over half of all digital or online transactions made in Nigeria. 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.
Patrick Collison, Stripe's co-founder and CEO, said that the acquisition would help Stripe expand to other geographics.
According to Techcrunch, it is looking like both companies will continue to operate independently. "We'll be acquired by Stripe to accelerate online commerce across Africa, pending standard closing conditions including regulatory approvals", he said. We will try to process as quickly as possible to protect the rights of the author. And even with wider global declines, online shoppers are growing twice as fast.
Stripe - the $36B private payments firm - has the most ambitious mission statement of any startup: it wants to increase the GDP of the internet. "We can't wait to see what they will build next and how their growth can turbocharge the African tech ecosystem." said Matt Henderson, Stripe's business lead in EMEA. "And I think about how over the next few years, there are going to be bigger exits because now it can be done".
Founded in 2015 and launched in January 2016 by Akinlade and Ezra Olubi (who serves as chief technology officer), Paystack was the first Nigerian company to be accepted into Y Combinator.
Collison further noted that Stripe is planning for "a longer time horizon" than most other Fintech businesses.