Funds big Stripe has acquired a four-year-old competitor, Lemon Squeezy, the latter firm announced Friday.
Phrases of the deal weren’t disclosed.
As a service provider of file, Lemon Squeezy calculates and pays world gross sales tax for digital merchandise, dealing with authorized processing and charges in each nation. It primarily serves SaaS and software program companies.
In a post on X, Stripe CEO Patrick Collison introduced the acquisition, saying, “Welcome @lmsqueezy! We’re going to scale service provider of file promoting in a giant means.” And Chief Product Officer Will Gaybrick shared in his personal post: “When requested “what ought to Stripe ship subsequent?” lots of you’ve mentioned service provider of file. The Lemon Squeezy group has constructed a wonderful MoR product, and we’re excited to work along with them to assist extra of you launch to develop!”
In a blog post, Lemon Squeezy co-founder and CEO JR Farr famous that since his 13-person firm’s public launch in 2021, that it 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 not clear how a lot, if any, enterprise funding the startup has raised.)
He added: “However regardless of the attract of those alternatives, we knew that what we had constructed was actually particular and wanted the fitting associate to take it to the following stage. We’re proud to say that we’ve discovered that associate in Stripe and have gone from concept to acquisition in underneath three years.”
Whereas he didn’t share present income figures, Farr mentioned that Lemon Squeezy surpassed $1 million in annual recurring income 9 months after its public launch in 2021.
The founder additionally mentioned that Lemon Squeezy has been processing funds on Stripe since its inception.
This isn’t Stripe’s first acquisition this yr. In March, the funds big accomplished an “acqui-hire” of the four-person group from Supaglue for an undisclosed sum. Supaglue raised a $6.8 million seed spherical in November 2021, led by Benchmark normal associate Chetan Puttagunta. (Puttagunta didn’t reply to TechCrunch’s request for remark.)
Supaglue, previously referred to 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 staff, that over time had raised $6.6 million from traders equivalent to Sequoia Capital and Kleiner Perkins after graduating from Y Combinator’s Winter 2020 cohort.
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