Nigerian payments start-up, Paystack has raised US$1.3 million in a seed funding round from local and international investors to grow its sales and marketing operations.
The announcement follows news that the fintech start-up has recently built a payment gateway integration for Shopify, one of the world’s largest ecommerce platforms.
Founded by Shola Akinlade and Ezra Olubi in 2015, the Y Combinator-backed online payments platform is solving the considerable challenge of online payment transactions in Nigeria, by seamlessly connecting all multi-channel payment options with merchants across the country.
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 on boarding.
Merchants who sign up for Paystack can receive live payments from customers within 30 minutes of integration and the product allows for recurring billing, thanks to its PCI-Compliant one-click and subscription payments infrastructure.
Paystack CEO Shola Akinlade says: “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.”
Investors in this round include 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 Angels.
“Paystack is addressing a massive market, helping businesses accept payments online in less than 30 minutes from sign-up,” said Christian Ebersol, Associate at Comcast Ventures. “We look forward to supporting this talented team as they streamline the payment process between merchants and consumers.”