By Obinna Chima
Analysts at Renaissance Capital (RenCap) have estimated the perceived value realised by Nigeria’s start-up, Paystack in the recent announcement of its acquisition by Stripe, an American financial services and software company.
The deal was put at over $200 million.
RenCap estimated in a report on the transaction obtained yesterday that the deal valued Paystack at about 14 times of the fintech’s annualised gross revenue in 2020 and 40 times its net revenue.
The financial advisory firm stated that in Nigeria, the merchant service charge (MSC) is capped at 1.5 per cent, which is shared along the payments value chain.
“Paystack’s niche is in online payments, processing over half of Nigeria’s online transactions. It’s used by 60,000 businesses in Ghana and Nigeria for online and offline payments and has launched a pilot in South Africa.”
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Source: Thisday Newspaper