October 16, 2020
By Ndubuisi Ekekwe of Tekedia
Stripe acquires Nigeria’s Paystack for more than $200 Million. When Stripe invested in Paystack a few years ago, many noted that it was certainly a way to understand the market. I did speak and exchanged emails with the co-founder of Stripe, John Collison, during that time. Now, Stripe has understood well enough, and now wants to buy-out the whole company, creating multi-millionaires in Nigeria overnight.
Nigeria, this is a good news because across the nation, a new club has just been formed: those with extra money to support emerging companies. To Paystack boys, well done. Both have served Nigeria and Africa in great ways.
Now, Flutterwave needs to step up its game as Stripe has just landed in Lagos!
Stripe is acquiring Paystack, a startup out of Lagos, Nigeria that, like Stripe, provides a quick way to integrate payments services into an online or offline transaction by way of an API. (We and others have referred to it in the past as “the Stripe of Africa.”)
Paystack currently has around 60,000 customers, including small businesses, larger corporates, fintechs, educational institutions, and online betting companies, and the plan will be for it to continue operating independently, the companies said.
Just like that, Paystack is worth more than Unity Bank, FCMB Group Plc and Wema Bank combined. Wema Bank began life in the 1940s. Just looking at its market cap, it is evident that ALAT, its digital bank, has struggled as it has not delivered multiples which are evident. FCMB Group Plc has many entities besides the bank, FCMB Bank.
But via an API, Paystack has created more value than all of them combined. That is the power of operating at the edges of the smiling curve, instead of the center. Paystack operates at the edges and has unlocked multiples.
The post Stripe Acquires Nigeria’s Paystack for More than $200m first appeared in Tekedia on October 15, 2020.