Thanks to digital innovation, the business landscape has evolved dramatically over the years. Offline businesses are now tapping into the potential of digital to leverage their technologies, in order to create value and new services.
Fintech plays an integral part in this massive shift in the industry. Numerous fintech startups are solving problems that financial services and banks faced in the past. Based out of Ikeja, Nigeria, Paystack is solving the payments problem by making it easy for organisations of all sizes to collect payments from around the world.
Biggest startup acquisition of Nigeria
Recently, the fintech giant Stripe has entered into an agreement to acquire Paystack. Although the terms of the deal have not been disclosed, TechCrunch reports that the deal is worth over $ 200M (€170.1M); making it the biggest startup acquisition to have occurred in Nigeria. This is, reportedly, also Stripe’s biggest acquisition to date anywhere.
It’s worth mentioning that earlier this year, Stripe secured $ 600M (approx €553 million) in a Series-G round. This funding helped the unicorn expand its API-based payments services into more places,
As per the company claims, The African internet economy is growing quickly, with online commerce in the region growing 21% year-over-year, 75% faster than the global average.
“This acquisition is the culmination of a close partnership between Stripe and Paystack over the last several years. Both companies are alums of the Y Combinator accelerator program, and Stripe led our Series A round of funding in 2018,” Shola Akinlade, CEO and cofounder of Paystack mentions in a blogpost.
Will continue to operate independently
To date, more than 60,000 businesses in Nigeria and Ghana use Paystack to securely collect online and offline payments, launch new business models and deepen customer relationships. Notably, Paystack processes more than half of all online transactions in Nigeria.
According to Paystack, it will continue to operate independently, growing its operations in Africa and adding more international payment methods. Furthermore, Paystack’s capabilities will be embedded in Stripe’s Global Payments and Treasury Network (GPTN), a programmable platform for global money movement that currently spans 42 countries.
Stripe valued at €33B
Founded by John Collison and Patrick Collison in 2010, Stripe develops software that allows businesses to accept payments online.
A couple of weeks back, the fintech startup Stripe announced a partnership with CRM software company Salesforce to help enterprise businesses to quickly bring new online products and services to market with best-in-class payments capabilities to support their customers and boost revenues.
Valued at €33B, Stripe has numerous high-profile customers including Zoom Video Communications, Caviar, Coupa, Just Eat, Keap, Lightspeed, Mattel, NBC, and Paid. The company has offices in Dublin, London, Paris, Singapore, and Tokyo.
Main image credits: Stripe
Stripe makes a big acquisition, Google rolls out search improvements and Snapchat adds a TikTok-y feature. This is your Daily Crunch for October 15, 2020.
The big story: Stripe acquires Nigeria’s Paystack
Stripe has made its biggest acquisition to date. It announced today that it bought Paystack, a Lagos-headquartered startup that makes it easy to integrate payment services — we’ve referred to it in the past as “the Stripe of Africa.”
Sources tell us that the acquisition price was more than $ 200 million.
In an interview with TechCrunch, Stripe CEO Patrick Collison said that expanding into Africa presents the company with “an enormous opportunity,” adding that Stripe is planning for “a longer time horizon” than most other companies: “We are thinking of what the world will look like in 2040-2050.”
The tech giants
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Snapchat launches its TikTok rival, Sounds on Snapchat — Snapchat made good on its promise to release a new feature that would allow users to set their Snaps to music.
Mario Kart Live: Home Circuit review — Bryce Durbin offers an illustrated look at a new edition of Mario Kart that incorporates a real remote-controlled car.
Startups, funding and venture capital
River, the latest venture from Wander founder Jeremy Fisher, launches with $ 10.4M in funding — River is meant to rethink the way we consume content across the internet.
Small business payments and marketing startup Fivestars raises $ 52.5M — It’s a difficult time for small businesses, and Fivestars CEO Victor Ho said that many of the big digital platforms aren’t helping.
Bipedal robot developer Agility announces $ 20M raise — Agility’s Digit is a package delivery robot capable of navigating stairs and other terrain.
Advice and analysis from Extra Crunch
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Brighteye Ventures’ Alex Latsis talks European edtech funding in 2020 — European edtech firm Brighteye Ventures recently announced the $ 54 million first close of its second fund.
Tesla’s decision to scrap its PR department could create a PR nightmare — The move effectively makes founder Elon Musk the company’s lone voice.
(Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.)
New Oxford machine learning-based COVID-19 test can provide results in under 5 minutes — The test also offers advantages when it comes to detecting actual virus particles, instead of antibodies or other signs of the presence of the virus.
When was the last time you worked out your soul? — Another discussion of wellness startup funding, this time via the latest episode of the Equity podcast.
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