Funds Big has acquired Lemon Squeezy, a four-year-old competitor, in a deal completed on Friday.
Terms of the agreement remained undisclosed.
The company acts as a service provider, calculating and paying global sales taxes on digital goods, handling legal processing and fees in every country. The platform mainly caters to Software as a Service (SaaS) and software company clients.
During a recent announcement, Stripe CEO Patrick Collison unveiled the company’s latest acquisition, expressing enthusiasm by stating: As part of our ambitious growth strategy, we are poised to revolutionize the file sharing services industry on a massive scale. When asked what Stripe should prioritize next, many of you have passionately advocated for seamless file sharing capabilities. The Lemon Squeezy team has developed an outstanding MoR product, and we’re thrilled to collaborate with them to help more of you successfully launch and grow your initiatives!
During the podcast, Lemon Squeezy co-founder and CEO JR Farr revealed that since his firm’s public launch in 2021, it has secured “many acquisition agreements” and “Sequence A term sheets” from investors. Specifically, Farr highlighted a $50 million Series A term sheet during the conversation. While details about the startup’s venture capital funding are unclear.
Whatever the allure of those alternatives, we were keenly aware that what we had built was truly unique and sought a best-in-class partner to take it to the next level. “We’re thrilled to announce the remarkable journey of discovering our partner in Stripe, culminating in a successful acquisition within an impressive timeframe of under three years.”
While Farr refrained from disclosing current income levels, he did note that Lemon Squeezy achieved an annual recurring income of over $1 million just nine months after its public debut in 2021.
Since its founding, the company’s payment processor of choice has consistently been Stripe, with Lemon Squeezy leveraging this integration to facilitate seamless transactions from day one.
Stripe has already made acquisitions this year, not just this one. In March, a significant milestone was achieved as the funds’ leadership made the bold decision to acquire the entire four-person staff from unknown sources for an undisclosed sum. Superglue secured a $6.8 million seed round in November 2021, with Benchmark’s Chetan Puttagunta leading the investment as a partner. TechCrunch requested a comment from Puttagunta, but received no response.
Originally branded as Supergrain, Supaglue emerged as a pioneering open-source developer platform, empowering seamless integrations that catered to end-user needs.
In the final summer season, Stripe, a startup that created a low-code analytics software to help engineering leaders better comprehend how their teams perform. Originally a small startup, comprising just seven employees, the company subsequently secured $6.6 million in funding from esteemed investors such as Sequoia Capital and Kleiner Perkins following its graduation from Y Combinator’s Winter 2020 cohort.
