Funds big Stripe introduced on Friday that it has acquired four-year-old competitor Lemon Squeezy.
Phrases of the deal weren’t disclosed.
As a self-proclaimed “service provider of file,” Lemon Squeezy calculates and pays world gross sales tax on digital merchandise, dealing with authorized proceedings and charges in every nation. Primarily serving SaaS and software program companies.
Stripe CEO Patrick Collison introduced the acquisition in a put up on Shares: “Lots of you’ve got mentioned this to me when requested “What ought to Stripe launch subsequent?” The Lemon Squeezy crew has constructed an incredible MoR product and we’re excited to work with them to assist extra folks. Begin rising!
Lemon Squeezy co-founder and CEO JR Farr famous in a weblog put up that because the firm went public in 2021, the corporate has obtained “many acquisition provides and (Sequence A) time period sheets from traders.” In a single podcast, Farr particularly mentioned turning down a $50 million Sequence A time period sheet. (It’s unclear how a lot enterprise capital, if any, the startup has raised.)
He added: “As tempting as these alternatives had been, we knew that what we had been constructing was actually particular and wanted the suitable accomplice to take it to the subsequent stage. We’re proud to say that we discovered it in Stripe companions and went from concept to acquisition in lower than three years.
Whereas Farr didn’t disclose present income figures, he mentioned Lemon Squeezy surpassed $1 million in annual recurring income 9 months after its public launch in 2021.
The founders additionally mentioned that Lemon Squeezy has been processing funds on Stripe since its inception.
This is not Stripe’s first acquisition this yr. In March this yr, the funds big accomplished the “acquisition” of Supaglue’s four-person crew for an undisclosed quantity. Supaglue raised a $6.8 million seed spherical in November 2021, led by Benchmark common accomplice Chetan Puttagunta. (Puttagunta didn’t reply to TechCrunch’s request for remark.)
Supaglue, previously often called Supergrain, is an open supply developer platform for consumer integration.
Final summer time, Stripe acquired Okay, a startup creating low-code analytics software program to assist engineering leaders higher perceive the efficiency of their groups. OK is a small startup with simply seven staff that has raised $6.6 million over time from traders together with Sequoia Capital and Kleiner Perkins, after graduating from Y Combinator’s Winter 2020 class.
