Summary:
Stripe acquired Lemon Squeezy, a four-year-old payment processing startup that specializes in serving SaaS and software businesses.
Lemon Squeezy operates as a merchant of record, handling global sales tax calculations and payments for digital products.
Stripe aims to significantly scale merchant of record selling with this acquisition, addressing growing demand in the market.
Lemon Squeezy achieved $1 million in annual recurring revenue within nine months of its public launch.
Stripe's strategic acquisitions demonstrate their commitment to expanding services and staying ahead in the rapidly evolving payments landscape.
Stripe Acquires Payment Processing Startup Lemon Squeezy: A $1 Million ARR Company
Payments giant Stripe has acquired Lemon Squeezy, a four-year-old competitor, for an undisclosed amount. Lemon Squeezy serves primarily SaaS and software businesses as a merchant of record, handling global sales tax calculations and payments for digital products.
Stripe CEO Patrick Collison announced the acquisition on X, stating that they plan to scale merchant of record selling significantly. Stripe's Chief Product Officer Will Gaybrick highlighted the acquisition's alignment with their vision to address the growing demand for merchant of record services.
Lemon Squeezy co-founder and CEO JR Farr mentioned receiving multiple acquisition offers and Series A term sheets since their public launch in 2021, including a $50 million Series A offer that they declined. Farr emphasized the company's commitment to finding the right partner to take their unique product to the next level.
Lemon Squeezy achieved $1 million in annual recurring revenue within nine months of its public launch and has been processing payments through Stripe since its inception.
This isn't Stripe's first acquisition this year. In March, they acquired Supaglue's team and last summer they acquired Okay, a startup developing low-code analytics software.
Stripe's strategic acquisitions reflect their commitment to expanding their services and staying ahead in the rapidly evolving payments landscape.
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