Paystack, a Nigeria-based FinTech startup that provides payments tools to businesses in Afrika, has concluded its Series A funding round of $8 million. The Series A funding round was led by Stripe with Visa also participating while Tencent and Y Combinator also participated by providing follow-on funding.
![Nigeria Paystack FinTech startup Founders](/content/images/2018/08/Paystack-Founders_1.jpg)
Paystack founders (L-R): Ezra Olubi (CTO and Co-founder) and Shola Akinlade (CEO and Co-founder).
Other investors that participated in Paystack's $8 million Series A funding round include angel investors Tom Stafford (Managing Partner at DST Global), Gbenga Oyebode (founding partner of Aluko & Oyebode and Board member of MTN Nigeria), and Dale Mathias (Co-founder, Innovation Partners Africa).
“As recently as 2015, it was really difficult for a developer or business owner in Nigeria to quickly start accepting online payments. 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. 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,” said Shola Akinlade, CEO, and co-founder of Paystack.
Growth of FinTech startups in Nigeria
Paystack is one of many illustrious FinTech startups in Nigeria that continue to expand beyond Nigeria's borders and attract international investors. Others include Flutterwave, Lidya and Mines - which recently concluded a Series A funding round of $13 million.
“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," said Patrick Collison, CEO of Stripe.
Paystack reports that within a little over 2 years, it has grown to process nearly 15% of all online payments in Nigeria. The FinTech startup also counts among its clients a variety of companies including small businesses, telecommunications companies, airlines, and government agencies.
In 2016 Paystack concluded a seed funding round of $1,3 million from international investors Tencent, Comcast Ventures and Singularity Investments, with participation from Spark, M&S Partners, Tokyo Founders Fund, Blue Rinc Capital, Pave Investments, KIBS-CFY Partners, Michael Siebel, Justin Kan, Olumide Soyombo, Leonard Stiegeler and a number of other Angel investors. With the Series A funding, this brings Paystack’s total investment to date to more than $10 million.
Beyond payments, Paystack provides businesses with powerful growth tools in the form of a Dashboard that helps them closely monitor and act on every aspect of their business’ performance, from granular transaction error data to detailed customer insights.
“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,” said Akinlade.
Cover image credit: Paystack founders.