The Nigerian payment startup Paystack has been acquired by the U.S. tech and payment giant Stripe, in a deal worth 200 million dollars that will continue to see the two companies run independently.
Stripe in April planned to expand the company globally by injecting 600 million dollars for that purpose.
Pay stack, a payment service similar to Stripe, uses API and allows users to set up online payment systems to enable their businesses to accept credit and debit cards from customers.
The company was founded by two Nigerians, Shola Akinlade and Ezra Olubi, in 2015 and has seen rapid growth from day one.
Paystack has over 60,000 users with a client base that includes small businesses, merchants, government agencies and large corporate organisations, including telecoms giant, MTN, and global ride-hailing firm, Bolt.
The startup is the first Nigerian company to be admitted to Y-combinator of the Silicon Valley that was benefited by similar companies, including Stripe.
Stripe’s acquisition of Paystack is a continuation of the existing relationship between both companies.
The e-payment giant led Paystack’s eight million dollars Series A round which also saw participation from Visa, Tencent, and Y Combinator in 2018.