The Paystack effect

Business Daily

BBC

News, Business

4.4 • 796 Ratings

🗓️ 18 February 2021

⏱️ 18 minutes

🔗️ Recording | iTunes | RSS

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Summary

How the biggest start-up acquisition out of Nigeria is resonating across Africa. Last year Nigeria saw its biggest ever start-up acquisition - a multi million dollar deal for digital payments company Paystack. The result was a massive shift in the minds of entrepreneurs and investors in Africa’s Fintech scene. The company which processes more than half of all online payments in Nigeria, was started by two graduates in their 20s five years ago. It ended in a $200 hundred million dollar deal with Stripe, the US-based payments software company. Tamasin Ford speaks to Chilufya Mutale, the co-founder and CEO of PremierCredit in Lusaka, an online micro-lending platform operating in Zambia and Zimbabwe. Plus Chijioke Dozie, the co-founder of Carbon, a PanAfrican digital bank operating in Nigeria, Kenya and Ghana who says the Paystack acquisition is not only inspiring for existing entrepreneurs, it will encourage more people to join the Fintech scene. And to Katlego Maphai, the co-founder and CEO of Yoco in Cape Town, a digital payments company for small businesses in South Africa. Plus Maya Horgan Famodu, the founder and Managing Director at Ingressive Capital, a Venture Capitalist Fund based in Lagos in Nigeria which targets early stage start-ups across Sub-Saharan Africa and were an early investor in Paystack. And to Amandine Lobelle, the head of business operations at Paystack. (Picture credit: Getty Creative)

Transcript

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0:00.0	Hello, I'm Tamison Ford. Welcome to Business Daily from the BBC.
0:06.9	Last year's multi-million dollar acquisition of Nigeria's biggest digital payments company,
0:13.1	Paystack, is already being felt across Africa.
0:16.7	The guys were domestically educated, they worked locally, they built businesses locally,
0:21.8	and it just goes to show that if you are smart and you dedicate yourself to a craft,
0:27.9	you literally can realize a multi, multi, hundreds of million dollars exit.
0:32.6	The pay stack effects is not only reaching entrepreneurs, investors are being swept up too.
0:38.3	I've never seen this level of deal flow, you know, almost every other week.
0:43.3	A funding round is being announced and a significant funding round from very high-quality investors
0:48.3	that are really starting to take a good look at the continent now.
0:51.3	And that's extremely positive.
0:53.3	We take a look at how the biggest
0:55.3	startup acquisition to come out of Nigeria is resonating across the whole of Africa. That's in
1:01.8	Business Daily from the BBC. If you follow the goings-on in the world of fintech, then your social media would have been
1:11.8	dominated by the Paystack news over the last six months.
1:16.2	With Paystack startup business for entrepreneurs, you can collect payments from anywhere around the world
1:20.3	with multiple payment options.
1:22.1	Digital payments company Paystack processes more than half of all online payments in Nigeria. It began with two graduates in
1:30.8	their 20s in Lagos five years ago and ended with a $200 million deal with Stripe, the US-based
1:38.9	payment software company. It's the biggest startup acquisition ever to come out of Nigeria, and the news is being
1:47.3	felt by entrepreneurs across the continent. This was a great validation for many African startups,
1:54.2	because it set a great president for international tech companies that are looking to expand
	...

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