Stripe Acquires Paystack, a Nigerian startup for $200m
The company which was started as the CEO and co-founder Shola Akinlade would recall ‘ for fun’ when he was fascinated with how to integrate a card transaction into a webpage.
Pursuing his interest with his co-founder and CTO Ezra Olubi, Paystack now provides a quick way to integrate payments services into an online or offline transaction by way of an API.
The company currently has about 60,000 customers, which is a very little amount when compared to Stripes.
Stripe boasts to process 250M+ API requests per day, with 135 currencies and payment methods in around 35 countries and is said to be currently worth around $36 billion and could be headed for an IPO any moment.
However, Paystack in its original African setting is actually developing tools to solve problems and plugging the gaps in financial transactions as is best suited to the African continent.
The African continent which is said to have an annual ecommerce growth of 30%, something Stripe is yet to get a grasp on.
Stripes acquisition of Paystack is a way of expanding its territorial advantages, as just in the last 18 months it has added additional 17 more countries to its coverage.
Back in 2016 Paystack went through Y combinator and in 2018 Stripe was said to have led an $8 million funding round including visa and Tencent for the startup.
Although Stripes CEO and co-founder Patrick Collison had noted that it’s support for startups are not in anyway a strategy with which to pressure them into any acquisition whatsoever.
The companies has however noted that the plan will be for Paystack to still continue operating independently.
Experts have noted that this a very big win for Nigerians, knowing now that there is a huge potential for startups in the region.
The Paystack’s acquisition is currently the biggest acquisition whatsoever, in the region.
And this may also be a great time to pass a message across to the government to yield to the yarnings of the citizens expecially the youths and initiate a Police Reform.
The youths are currently protesting ( #EndSARS, #EndPoliceBrutality) a grotesque police brutality against them in the country, where they are outrightly profiled as internet fraudstars and as such manhandled by the police.
In this day and age of digital commerce where online content creators are making more money than the prestigious careers in law and banking.
It is still very difficult for the police to understand that one can become very successful without holding a 9 to 5 job or having a physical store.
We hope that the leaders will be smart enough to resolve the issues quickly before it leads to a massive brain drain, loosing great minds like the Paystack founders and many other budding entrepreneurs around the country.