With its large population and rapid change in the economy, Nigeria is seeing a lot of development in the area of Technology. This development can be seen in the rate at which startup are springing up. Some are owned by Nigerians and others are controlled by foreign investors. One of such bright start-ups is Paystack, a leader in the area of financial services, and they have just announced some funding from Stripe, Visa, and Tencent.
Paystack is a Lagos-based startup, they specialize in providing online payment facilities to merchants and others. They do this through an API and a few lines of code. The company just announced a Series A round of funding worth $8 Million.
They have succeeded in making huge progress in the Nigerian market, which is evident in the tens of thousands of businesses integrating their payment API. In their two years of existence, they have been able to process 15 percent of all online payments in the country. Going forward, their goal is to continue growing in the Nigerian market and also expand to other countries, starting with Ghana.
Speaking on the funding from Stripe, Patrick Collison, CEO of Stripe, said,
The Paystack founders are highly technical, fanatically customer oriented, and unrelentingly impatient. We’re excited to back such people in one of the world’s fastest-growing regions.
Shola Akinlade, the CEO of Paystack who also Co-founded the company with Ezra Olubi (CTO) stated,
It takes a lot of local nuances to build for African businesses. Paystack seems to be the only one doing this.
You will recall that back in 2016, Paystack became the first Nigerian company to Y Combinator. Other investors involved in this funding include Visa, Chinese giant Tencent, parent company for WeChat and other services. Tencent was also involved in Paystack’s previous funding where they have raised $10 million to date.
Even though there are other payment platforms operating in the country, Akinlade describes Paystack as a more modern take on payments. One of such other payment company is Interswitch. Paystack has integrated a wide range of payment options that Nigerians can and made these options easy to use. Soon other countries will also be presented with these payment options to make payments easier and quicker.