2016 has been a pretty good year for Nigerian fintech and when you’re thinking the year is practically over and not much could happen, there’s still more good news, this time from Paystack.
Paystack has secured a $1.3m seed investment from investors Tencent, Comcast Ventures and Singularity Investments, with participation from Spark, M&S Partners, Tokyo Founders Fund, Blue Rinc Capital, Pave Investments and KIBS-CFY Partners. Angel investors Michael Siebel, Justin Kan, Olumide Soyombo, Leonard Stiegeler among others participated in the round.
Led by co-founders Shola Akinlade and Ezra Olubi, the Paystack team will use the investment to build out its engineering team in Lagos, as well grow its sales and marketing operations, to accelerate product development and customer onboarding.
Paystack CEO Shola Akinlade in a press release stated “Having painstakingly identified the many barriers that merchants on the continent have when it comes to online payments, we have built and refined a product for Africa that we hope will act as a catalyst for the continent’s online economy, be it on-demand services, ecommerce, travel & hospitality, financial services or entertainment. We know Africa’s digital economy has potential, many billions of dollars of potential, we simply need to unlock it and make businesses work better, faster and more effectively. Paystack will do this. Thanks to the backing from our investors with today’s announcement, and our time spent with Y Combinator, we are now in the strongest position yet to resolve the disconnect between African businesses and accepting payments.”
At present, businesses on the continent struggle to integrate and keep up with many different payment options on offer. Paystack does the heavy-lifting and is aiming to become the go-to, indispensable layer that connects merchants to payment options. Paystack is completely platform agnostic – it does not favour one payment platform over any other – something unique in African fintech, which is currently very fragmented.
2017 already looks promising.