Posted on September 3, 2018
Nigerian payments company Paystack has raised $8 million in Series A funding from American tech company Stripe. Multinational financial services company Visa, and Chinese multinational Tencent also participated in the round, as did Y Combinator and angel investors Tom Stafford (Managing Partner at DST Global), Gbenga Oyebode (founding partner of Aluko & Oyebode) and Dale Mathias (Co-founder, Innovation Partners Africa). This brings the company’s total investment to date to more than $10 million, having earlier secured funds from Tencent, Y Combinator, Comcast Ventures, and Ventures Platform.
“We started Paystack because we believe that better payments tools are one of the most important things that African businesses need to unlock their explosive potential,” says Shola Akinlade, CEO and co-founder of Paystack. “We think of Paystack as an amplifier of the incredible work that African business owners are already doing. With better technology tools, African businesses can be better equipped to play a growing role in the global economy.”
Paystack intends to use the new round of funding to scale its engineering team, further deepen its payments infrastructure, and accelerate its expansion across the continent.
“As Paystack looks to expand rapidly across the continent, we’re thrilled to have the benefit of the deep experience of Stripe, Visa, and Tencent. Our ambition is to give African merchants the tools and services they need to go toe-to-toe with the best businesses in the world, and win,” Akinlade adds.
Patrick Collison, CEO of Stripe expressed his company’s excitement at backing Paystack, describing the founders as “highly technical, fanatically customer oriented, and unrelentingly impatient”.
Otto Williams, who heads Strategic Partnerships, Fintechs and Ventures for Visa in Central & Eastern Europe, Middle East and Africa (CEMEA) explained that Visa’s investment was strategic as Africa is central to the payment giant’s long-term growth strategy.
“Our investment in Paystack aligns with the kind of investments we look for – those that will help extend our reach into the global commerce ecosystem as it changes and grows, and that will provide mutually beneficial business opportunities,” Williams said.
Launched in January 2016 by Shola Akinlade and Ezra Olubi, Paystack has grown to power tens of thousands of businesses, processing millions of payments in Nigeria.