Paystack, a fintech startup raises USD1.3 million

Fiserv

Paystack, epayment startup has disclosed that it has raised about USD1.3 million funding from local and international investors.

Paystack was founded by Shola Akinlade and Ezra Olubi last year. The small payment company got an early seed funding from Y Combinator, an early seed accelerator based in Silicon Valley.

The company disclosed that it has over 1,500 customers who are using its platform to accept payment. It has gone ahead to relaunch its site into a simpler and cleaner interface.

It is expected that Paystack will be using the funding to expand into more markets in West Africa and hire more marketing and sales staff who will help it grow its customer base.

The challenge ahead of the company are enormous and it will need to get the critical mass of the ecommerce ecosystem to come on board. Paystack is currently competing with Interswitch, the largest payment company in in Nigeria with its Quickteller product that dwarfs Paystack in customer base and credibility.

Interswitch also has an edge over Paystack has it has a marriage of online and offline merchants, a major segment of the market that Paystack is not exposed to.

The company will need to innovate more beyond raking in more online merchants who are currently having the worst of times due to Nigeria’s economic woes.