Nigeria – Paystack investors cash out big return on investment

Paystack investors cashed big following heavy returns on their investments.

It was indeed a big day for the African startup ecosystem as it was distribution day for individual and corporate investors who invested in Paystack.

The fintech company, which was acquired for about $200 million by America’s Stripe, commenced pay out to its investors.

Some of the investors took to Twitter to express their joy in their return on investment. Jason Njoku, Founder of IrokoTV who is also an investor confirmed the distribution on social media.

The angels who invested in the seed round of Paystack back in 2016 made approximately 1,440% ROI. That is 14.4 times their money in only 5 years, according to Njoku.

Paystack, the Lagos-based payments startup that helps merchants accept payments from their customers, has grown so big that it’s said to process more than half of Nigeria’s online transactions.

And currently, over 60,000 businesses in Nigeria and Ghana use the platform to collect online and offline payments.

Paystack was the first-ever startup out of Nigeria to get into Y Combinator (YC), a US-based seed-stage accelerator.

Their success into YC opened the door for other Nigerian startups to get into YC, access foreign investments, and raise significant rounds.

In 2020, Stripe, a US payment giant acquired Paystack in a deal worth over $200 million (₦76 billion). Stripe acquired Paystack to accelerate online commerce across Africa.

In 2018, stripe led Paystacks Series A round of $8 million with participation from Visa, Tencent and others.