Stripe acquires Lemon Squeezy

Stripe has announced the acquisition of Lemon Squeezy, specializing in payment processing, as revealed by Lemon Squeezy on Friday. While the financial details of the transaction were not disclosed, this acquisition marks a significant move for both companies.

Lemon Squeezy, known for its comprehensive payment solutions, acts as a merchant of record by calculating and paying global sales taxes for digital products and managing legal processing and fees across various countries. The startup primarily caters to SaaS and software businesses, streamlining their financial operations.

Welcome @lmsqueezy! We're going to scale merchant of record selling in a big way. https://t.co/vd5ngcjq5P

— Patrick Collison (@patrickc) July 26, 2024

In a blog post, JR Farr, co-founder and CEO of Lemon Squeezy, highlighted the company’s journey since its public launch in 2021. Farr mentioned that despite receiving numerous acquisition offers and Series A term sheets from investors, the company remained selective. He specifically referenced declining a $50 million Series A term sheet, underscoring the company’s commitment to finding the right strategic partner. Farr expressed confidence in Stripe, stating, “We knew that what we had built was truly special and needed the right partner to take it to the next level. We’re proud to say that we’ve found that partner in Stripe and have gone from idea to acquisition in under three years.”

Although Farr did not disclose current revenue figures, he noted that Lemon Squeezy had surpassed $1 million in annual recurring revenue just nine months after its public launch in 2021. Importantly, Lemon Squeezy has been processing payments using Stripe’s platform since its inception, making the acquisition a natural progression.