Payments giant Stripe has acquired a four-year-old competitor, Lemon Squeezy, the latter company announced Friday.
Terms of the deal were not disclosed.
As a merchant of record, Lemon Squeezy calculates and pays global sales tax for digital products, handling legal processing and fees in every country. It primarily serves SaaS and software businesses.
In a post on X, Stripe CEO Patrick Collison announced 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 own post: “When asked “what should Stripe ship next?” many of you’ve said merchant of record. The Lemon Squeezy team has built an excellent MoR product, and we’re excited to work together with them to help more of you launch to grow!”
In a blog post, Lemon Squeezy co-founder and CEO JR Farr noted that since his 13-person company’s public launch in 2021, that it received “many acquisition offers and (Series A) term sheets from investors.” In one podcast, Farr specifically discussed turning down a $50 million Series A term sheet. (It’s not clear how much, if any, venture 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 did not share current revenue figures, Farr said that Lemon Squeezy surpassed $1 million in annual recurring revenue nine months after its public launch in 2021.
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Stripe acquires payment processing startup Lemon Squeezy
Payments giant Stripe has acquired a four-year-old competitor, Lemon Squeezy, the latter company announced Friday.
Terms of the deal were not disclosed.
As a merchant of record, Lemon Squeezy calculates and pays global sales tax for digital products, handling legal processing and fees in every country. It primarily serves SaaS and software businesses.
In a post on X, Stripe CEO Patrick Collison announced 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 own post: “When asked “what should Stripe ship next?” many of you’ve said merchant of record. The Lemon Squeezy team has built an excellent MoR product, and we’re excited to work together with them to help more of you launch to grow!”
In a blog post, Lemon Squeezy co-founder and CEO JR Farr noted that since his 13-person company’s public launch in 2021, that it received “many acquisition offers and (Series A) term sheets from investors.” In one podcast, Farr specifically discussed turning down a $50 million Series A term sheet. (It’s not clear how much, if any, venture 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 did not share current revenue figures, Farr said that Lemon Squeezy surpassed $1 million in annual recurring revenue nine months after its public launch in 2021.
Join this free live webinar with Hasura on August 20.
class=”inline-cta__register-button” href=”https://events.bizzabo.com/629615?promo=tcweeklyroundup&tr=true” data-mrf-link=”https://events.bizzabo.com/629615?promo=tcweeklyroundup&tr=true”>Register Now
Disclaimer
We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.
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