The unique global payment giant, Stripe has finally purchased Lemon Squeezy,
a rapidly growing rival that has been around for four years. JR Farr, the CEO of Lemon Squeezy, made the announcement in a post on X, on Friday, July 26, 2024.
This announcement was very exciting for Stripe and Lemon Squeezy users. And the CEO of Stripe responded to this great news on X saying “Welcome @lmsqueezy! We’re going to scale merchant of record selling in a big way.”
Lemon squeezy is a company of 13 individuals that made its public debut in 2021. According to JR Farr, the company’s co-founder and CEO, there have been numerous acquisition offers and term sheets from investors. In a podcast, he also mentioned rejecting a $50 million Series-A term sheet and emphasized the importance of finding the right partner for their special project to progress. He said “we are excited to have discovered Stripe as our partner and have progressed from concept to purchase in less than three years.” Even though he did not disclose their current revenue, Farr mentioned that Lemon Squeezy exceeded one million dollars in annual recurring revenue within nine months of its public launch in 2021. Despite the undisclosed terms of the agreement, the CEO enthusiastically anticipates improving payment solutions and simplifying the selling process. He mentioned that Stripe will enable merchants to expand their sales significantly.
It is important to note that Lemon Squeezy specializes in managing global sales tax for digital products. This company is an expert merchant of records who also takes care of legal processing and fees across all countries. Basically, they function as Software as a Service (SaaS) and software companies. Lemon Squeezy has put in relentless effort despite facing challenges and also marked important achievements during the journey. It has been disclosed that since the beginning, this company has depended on Stripe for handling their payments. Stripe acquiring Lemon Squeezy reflects the result of years of hard work and is a celebration of their strong partnership and common goals.
The giant fintech company, Stripe was established by brothers Patrick and Collins, from Limerick. The company, with dual headquarters in Dublin and San Francisco, recently implemented a significant change in its operations by offering certain services to customers who are not necessarily clients of its primary payment platform. It announced in April that it would slowly reintroduce cryptocurrency payments as part of its services following a hiatus of six years. About a year ago, the value of Stripe plummeted from $95 billion to $50 billion in 2021. Nevertheless, it’s worth has been steadily increasing since then, and most recently, Sequoia Capital, a venture capital firm, proposed purchasing shares from the fintech’s investors, valuing the company at around 70 billion dollars earlier this month.
Stripe has already made other acquisitions this year. In March, the payments company finalized an “acqui-hire” of a four-member team from Supaglue previously known as Supergrain, a public developer platform for user-facing questions, for an undisclosed amount. Supaglue secured $6.8 million in seed funding in November 2021, with Benchmark general partner Chetan Puttagunta leading the round. Moreover, the previous summer, Stripe acquired Okay, a startup that created a low-code analytics tool to assist engineering executives in gaining insight into their teams’ performance. Okay, a small start up with only seven staff members, had secured 6.6 million dollars from investors like Sequoia Capital and Kleiner Perkins after completing Y Combinator’s Winter 2020 program.
Hence, it is no longer news that Stripe acquires companies and improves them. Like Lemon Squeezy, some of the goals of some tech companies are to be acquired by tech giants to help them pursue their goals. This is why Lemon Squeezy took its time before finally deciding to merge with the reputable fintech company, Stripe. Both companies have the same values, missions, and are recognized for their customer-focused strategies as well as cutting-edge technologies. What is intriguing is that Lemon squeezy will now be able to gain advantages from stripe’s developer experience, Application Programming Interface (API) standards, and commitment to quality. And what is the significance of this? It means there will be a blend of the top features from each platform, providing users with a better, more user-friendly experience. Now, picture the amazingness of merging all the things you enjoy about Lemon Squeezy and Stripes. That is indeed a perfect combination.
The Lemon Squeezy team created a great Merchant of Records (MoR) product, and Stripe is thrilled to collaborate with them to assist more in launching and expanding! Both companies are very enthusiastic about the potential that awaits their coming together. Indeed, there are good things to come.
