Stripe acquires cost processing startup Lemon Squeezy

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Funds big Stripe has acquired a four-year-old competitor, Lemon Squeezy, the latter firm introduced Friday.

Phrases of the deal weren’t disclosed.

As a service provider of report, Lemon Squeezy calculates and pays world gross sales tax for digital merchandise, dealing with authorized processing and charges in each nation. It primarily serves SaaS and software program companies.

In a submit on X, Stripe CEO Patrick Collison introduced the acquisition, saying, “Welcome @lmsqueezy! We’re going to scale service provider of report promoting in a giant approach.” And Chief Product Officer Will Gaybrick shared in his personal submit: “When requested “what ought to Stripe ship subsequent?” a lot of you’ve stated service provider of report. The Lemon Squeezy workforce has constructed a superb MoR product, and we’re excited to work along with them to assist extra of you launch to develop!”

In a weblog submit, 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 provides 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 appropriate accomplice to take it to the subsequent stage. We’re proud to say that we’ve discovered that accomplice in Stripe and have gone from concept to acquisition in below 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 big accomplished an “acqui-hire” of the four-person workforce from Supaglue for an undisclosed sum. Supaglue raised a $6.8 million seed spherical in November 2021, led by Benchmark basic 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 similar to Sequoia Capital and Kleiner Perkins after graduating from Y Combinator’s Winter 2020 cohort.

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