Online payment processing for internet businesses, Stripe has acquired Paystack-modern online and offline payment for Africa.
Earlier this year, Stripe announced to pick up another $600 million in funding.
Stripe 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 as the organization acquires Paystack, a startup funding in Lagos, Nigeria.
Paystack provides a quick way to integrate payment services into an online or offline transaction by way of an API.
Paystack currently has around 60,000 customers, including small businesses, larger corporates, fintech, educational institutions, and online betting companies, and the plan will be for it to continue operating independently, the companies said.
However, terms of the deal are not being disclosed but sources close to it confirm that it’s over $200 million.
That makes this the biggest startup acquisition to date to come out of Nigeria, as well as Stripe’s biggest acquisition to date anywhere.
It’s also a notable shift in Stripe’s strategy as it continues to mature: typically, it has only acquired smaller companies to expand its technology stack, rather than its global footprint.
Speaking in an interview with TechCrunch, Stripe’s co-founder and CEO, Patrick Collison, said there is an enormous opportunity.
“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.
“Paystack was not for sale when Stripe approached us,” said Akinlade, who co-founded the company with Ezra Olubi (who is the CTO). “
“For us, it’s about the mission. I’m 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.”