In this news, we discuss the Silicon Valley payments firm Stripe buys Nigerian startup Paystack.
LAGOS (Reuters) – U.S. payments firm Stripe has bought Nigerian fintech start-up Paystack to expand into Africa’s fast-growing online market, the companies said Thursday.
The acquisition, which was reportedly worth some $ 200 million, reflects the growing e-commerce market in Nigeria and sub-Saharan Africa.
“The African internet economy is growing rapidly, with e-commerce growth in the region growing 21% year-over-year, 75% faster than the global average,” Stripe said in a statement. “To help grow Africa’s online GDP, Stripe has entered into an agreement to acquire Paystack.”
The Silicon Valley company is not listed but valued at $ 36 billion, according to the site PitchBook Investor Web.
Paystack, which also provides payment systems, works with more than 60,000 companies, including FedEx, UPS and MTN, and processes hundreds of millions of dollars each month.
Paystack will continue to operate independently, and Stripe will integrate it over time into its global payments and treasury network, a programmable platform for global money movements that currently spans 42 countries, Stripe said.
Paystack was started in 2016 by two Nigerian computer science graduates, Shola Akinlade and Ezra Olubi, who received seed funding from Silicon Valley’s Y-Combinator program.
Reporting by Libby George; Edited by David Clarke
Original © Thomson Reuters Corporation