Funds large 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 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 post on X, Stripe CEO Patrick Collison introduced the acquisition, saying, “Welcome @lmsqueezy! We’re going to scale service provider of file promoting in an enormous means.” And Chief Product Officer Will Gaybrick shared in his personal post: “When requested “what ought to Stripe ship subsequent?” a lot of you’ve stated service provider of file. The Lemon Squeezy staff 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 affords and (Sequence A) time period sheets from buyers.” 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 really particular and wanted the proper accomplice to take it to the following degree. We’re proud to say that we’ve discovered that accomplice in Stripe and have gone from concept to acquisition in underneath three years.”
Whereas 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 yr. In March, the funds large accomplished an “acqui-hire” of the four-person staff from Supaglue for an undisclosed sum. Supaglue raised a $6.8 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 season, 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 buyers equivalent to Sequoia Capital and Kleiner Perkins after graduating from Y Combinator’s Winter 2020 cohort.
Need extra fintech information in your inbox? Join TechCrunch Fintech here.
Wish to attain out with a tip? Electronic mail me at maryann@techcrunch.com or ship me a message on Sign at 408.204.3036. You may also ship a word to the entire TechCrunch crew at suggestions@techcrunch.com. For safer communications, click here to contact us, which incorporates SecureDrop (instructions here) and hyperlinks to encrypted messaging apps.
