Stripe buys Lemon Squeezy

Payments giant Stripe has announced its acquisition of Lemon Squeezy, a four-year-old competitor that primarily serves software as a service (SaaS) businesses. The terms of the deal were not disclosed, but Stripe CEO Patrick Collison expressed enthusiasm for the acquisition on social media platform X, stating, “Welcome @lmsqueezy! We’re going to scale merchant of record selling in a big way.” This move is seen as a strategic effort to bolster Stripe's offerings in the merchant of record (MoR) space. Lemon Squeezy's team has developed a robust MoR product, which aligns with feedback from Stripe's user base regarding future product developments. Chief Product Officer Will Gaybrick highlighted the importance of this acquisition, noting that many users have requested enhancements in the MoR area. The founder of Lemon Squeezy revealed that the startup has been processing payments through Stripe since its inception, indicating a long-standing relationship between the two companies. This acquisition is not Stripe's first in 2023; earlier in March, the company completed an “acqui-hire” of a four-person team from Supaglue, which had previously raised $6.8 million in funding. Additionally, last summer, Stripe acquired Okay, a startup focused on low-code analytics software, which had raised $6.6 million from notable investors. As Stripe continues to expand its portfolio through strategic acquisitions, the integration of Lemon Squeezy is expected to enhance its capabilities in serving SaaS businesses and improve overall merchant services.