Stripe / Paystack 2020
Stripe acquired Paystack for $200M on October 15, 2020.
- Target
- Paystack
- Acquirer
- Stripe
- Deal value
- $200M
- Deal type
- Cash
- Announced
- October 15, 2020
- Sub-sector
- Payments
Transaction overview
- Stripe announced the acquisition of Paystack on October 15, 2020, for approximately $200 million.
- The deal closed in late 2020, with Paystack continuing to operate as a distinct unit under Stripe.
- Paystack is a Lagos-based payments company that lets African businesses accept online and offline payments.
- At announcement, Paystack processed payments for more than 60,000 businesses in Nigeria and Ghana.
- Stripe is a San Francisco-based payments infrastructure company serving businesses in over 40 countries.
- The acquisition gave Stripe its first direct operational foothold in sub-Saharan Africa.
- Paystack founders Shola Akinlade and Ezra Olubi remained with the company post-close.
Why it matters
- The deal was one of the largest acquisitions of an African technology startup at the time of announcement.
- It signaled that global payments infrastructure companies were beginning to compete directly for African merchant volume.
Strategic rationale
Stripe enters Africa through Lagos-based payments processor serving 60,000+ merchants across Nigeria, Ghana, and South Africa.
Deal terms & multiples
About Paystack
Paystack was founded in 2015 and is headquartered in Lagos, Nigeria. The company built a payments API that allows African businesses to accept card payments, bank transfers, and mobile money. It was accepted into Y Combinator's Winter 2016 batch, the first Nigerian company to join the accelerator. By the time of the Stripe acquisition, Paystack had expanded from Nigeria into Ghana and was processing payments for tens of thousands of merchants.
- Founded
- 2015
- HQ
- Nigeria
- Prior funding
- Approximately $10 million raised prior to acquisition, including a Stripe-led Series A in 2018
- Key metric
- 60,000+ businesses processed payments on Paystack at time of acquisition
About Stripe
Stripe was founded in 2010 by brothers Patrick and John Collison and is headquartered in San Francisco. The company provides payment processing APIs and financial infrastructure used by businesses ranging from early-stage startups to large enterprises. Stripe was privately held at the time of the Paystack acquisition, carrying a valuation of $36 billion following a September 2020 funding round. The company has since grown its valuation substantially and serves customers across North America, Europe, and Asia-Pacific.
- Founded
- 2010
Frequently asked questions
How much did Stripe pay for Paystack?
Stripe paid approximately $200 million in cash. The figure was widely reported at announcement but was not officially confirmed by either company.
Why did Stripe acquire Paystack?
Stripe wanted direct access to African markets, particularly Nigeria and Ghana, where Paystack had an established merchant base and regulatory relationships.
Did Paystack continue operating after the acquisition?
Yes. Paystack continued to operate under its own brand, with co-founders Shola Akinlade and Ezra Olubi remaining in leadership roles.
When did the Stripe and Paystack deal close?
The deal closed in late November 2020, roughly six weeks after the October 15 announcement.
Was Paystack profitable before the acquisition?
Paystack had reported reaching profitability in Nigeria prior to the deal, though detailed financials were not publicly disclosed.
What countries did Paystack operate in at the time of the deal?
Paystack was active in Nigeria and Ghana at the time of the acquisition and had stated plans to expand to other African markets.
Sources
- stripe.com /newsroom/news/stripe-acquires-paystack