Nigerian payments startup Paystack has become the latest African tech company to notch a multi-million dollar exit this year.
The startup has been acquired by Stripe, the US payments giant, in a deal that will see both companies continue to operate independently. The acquisition is part of Stripe’s international expansion plans on the back of a $600 million funding round in April. Neither company has disclosed the value of the acquisition but TechCrunch reports the deal is worth over $200 million.
Paystack, an API-based payments service similar to Stripe, allows users to set up online payment gateways to enable their businesses accept credit and debit card payments online from customers. Its acquisition is a hallmark of the startup’s rapid growth since it was first founded in 2015 by Shola Akinlade and Ezra Olubi.
It became the first Nigerian startup ever admitted into Y Combinator, the Silicon Valley incubator that has backed major global startups, including Stripe. Paystack has since garnered over 60,000 users with a client base that includes small business merchants, government agtencies, and large corporate organizations, including telecoms giant MTN, and global ride-hailing firm, Bolt. The company has also expanded to South Africa and Ghana, and has 114 employees.
Shola Akinlade and Ezra Olubi, founders of Paystack.Paystack’s acquisition also comes despite uncertain economic realities amid crises triggered by the ongoing coronavirus pandemic. The deal is part of a wider trend which is seeing African startups defy the