Payments big Stripe has acquired a four-year-old competitor, Lemon Squeezy, the latter firm introduced Friday.
Terms of the deal weren’t disclosed.
As a service provider of file, Lemon Squeezy calculates and pays international gross sales tax for digital merchandise, dealing with authorized processing and costs in each nation. It primarily serves SaaS and software program companies.
In a submit on X, Stripe CEO Patrick Collison introduced the acquisition, saying, “Welcome @lmsqueezy! We’re going to scale merchant of record selling in a big way.” And Chief Product Officer Will Gaybrick shared in his personal submit: “When asked “what should Stripe ship next?” a lot of you’ve stated service provider of file. The Lemon Squeezy crew has constructed a superb MoR product, and we’re excited to work along with them to assist extra of you launch to develop!”
In a weblog submit, Lemon Squeezy co-founder and CEO JR Farr famous that since his 13-person firm’s public launch in 2021, that it acquired “many acquisition offers and (Series A) term sheets from investors.” In one podcast, Farr particularly mentioned turning down a $50 million Series A time period sheet. (It’s not clear how a lot, if any, enterprise funding the startup has raised.)
He added: “But despite the allure of these opportunities, we knew that what we had built was truly special and needed the right partner to take it to the next level. We’re proud to say that we’ve found that partner in Stripe and have gone from idea to acquisition in under three years.”
While he didn’t share present income figures, Farr stated that Lemon Squeezy surpassed $1 million in annual recurring income 9 months after its public launch in 2021.
The founder additionally stated that Lemon Squeezy has been processing funds on Stripe since its inception.
This isn’t Stripe’s first acquisition this 12 months. In March, the funds big accomplished an “acqui-hire” of the four-person crew from Supaglue for an undisclosed sum. Supaglue raised a $6.eight million seed spherical in November 2021, led by Benchmark normal accomplice Chetan Puttagunta. (Puttagunta didn’t reply to TechCrunch’s request for remark.)
Supaglue, previously often known as Supergrain, was an open supply developer platform for user-facing integrations.
And final summer time, Stripe picked up Okay, a startup that developed a low-code analytics software program to assist engineering leaders higher perceive how their groups are performing. Okay was a small startup, with simply seven workers, that over time had raised $6.6 million from traders reminiscent of Sequoia Capital and Kleiner Perkins after graduating from Y Combinator’s Winter 2020 cohort.
Want extra fintech information in your inbox? Sign up for TechCrunch Fintech right here.
Want to succeed in out with a tip? Email me at maryann@techcrunch.com or ship me a message on Signal at 408.204.3036. You also can ship a be aware to the entire TechCrunch crew at ideas@techcrunch.com. For safer communications, click on right here to contact us, which incorporates SecureDrop (directions right here) and hyperlinks to encrypted messaging apps.
