Competitor Lemon Squeezy, a four-year-old company, was acquired by payments giant StripeThe terms of the agreement were not disclosed.
Lemon Squeezy, is responsible for calculating and paying taxes corresponding to international sales of digital products, as well as managing legal procedures and fees in various nations. Its main clientele is made up of software and SaaS companies.
In a post on XStripe CEO Patrick Collison announced the acquisition, saying: “Welcome to @lmsqueezy! We have plans to significantly expand the registered merchant base,” Chief Product Officer Will Gaybrick also shared his perspective on email: “When asked what the next step for Stripe should be, many respondents said it should be merchant-facing. The Lemon Squeezy team has developed an outstanding MoR product and we are excited to collaborate with them to launch and grow that product to a wider audience.”
En a public statement on their company blog, JR Farr, co-founder and CEO of Lemon Squeezy, mentioned that since the company was founded in 2021, he has received numerous acquisition proposals and term sheets from investors for a Series A funding round. In a podcast, Farr discussed his decision to reject a Series A proposal worth $50 million. It is not clear how much venture funding the startup has managed to raise so far.
He added that despite the attractive opportunities, he was aware of the uniqueness of what he had built and the importance of finding the right partner to move forward. He is proud to have found such a partner in Stripe, managing to transition from idea to acquisition in less than three years.
While he did not disclose specifics on current revenue, Farr reported that Lemon Squeezy reached annual recurring revenue of over $2021 million nine months after its public launch in XNUMX.
Since its inception, the company's founder said that Lemon Squeezy has been making payment transactions through the Stripe platform.
Stripe has made other acquisitions over the course of this year. In March, the payments company completed the acquisition of a four-person team of Supaglue, in an operation called "staff acquisition", the amount of which has not been disclosed. Previously, in November 2021, Supaglue had obtained an initial investment of 6,8 million dollars, which was led by Chetan Puttagunta, general partner of Benchmark.
Supaglue, formerly known as Supergrain, was an open source development platform for user-centric integrations.
Last summer, Stripe acquired startup Okay, which had built low-level code analysis software to help engineering managers gain deeper insight into their teams’ performance. Okay, a small company with seven employees, had raised $6,6 million in funding from investors including Sequoia Capital and Kleiner Perkins after participating in Y Combinator’s Winter 2020 cohort.
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