Lemon Squeezy, touted as an all-in-one payment platform for software companies, announced on Friday that they’ve officially been acquired by industry giant, Stripe.
Stripe has since asserted that via Lemon Squeezy, they’re aiming to scale merchant of record services, taking the industry to a whole new level.
So, what is Lemon Squeezy and how have they achieved their success?
Stick with us as we talk about payment processor technology and trace Lemon Squeezy’s journey since its inception four years ago, from its founding to the purchase by Stripe late last week, including what the latter means for the future of the company.
Lemon Squeezy, A Pandemic Startup
Founded by JR Farr, Gilbert Pellgrom and Orman Clark in 2020, in the midst of the Covid-19 pandemic, and launched publicly in 2021, Lemon Squeezy is a payments and marketing startup that operates as a merchant of record.
As such, the platform makes calculations and pays global sales tax for digital products. The platform is able to handle legal processing and fees for different countries around the world, which is one of its most attractive features.
Lemon Squeezy’s mission is to take the difficulty out of the sales of digital products, and it achieves this by handling all aspects of the process.
Although the company’s current revenue figures haven’t been publicised, Farr has stated that it enjoyed almost immediate success back when it was launched, having made in excess of $1 million in annual recurring revenue within the first year.
This was clearly noticed by Stripe back then, as the acquisition of Lemon Squeezy by Stripe has supposedly been in the works for about three years.
In addition to the fact that this move clearly indicates Stripe’s belief in Lemon Squeezy’s technology and potential, what does this acquisition mean for these two companies and their impending joint venture?
More from News
- Uber Teams With AI Firm, Wayve To Trial UK Robotaxis
- Summit Group’s Expansion into Ports, Fibre Optics and LNG
- Seraphic Security Unveils BrowserTotal™: Free AI-Powered Browser Security Assessment For Enterprises
- UK Tech Vacancies Rise 21%, Report Finds
- UK Government Launches AI Skills Plan For All Ages
- Trump Lifts Sanctions in Syria: What Does This Mean For Syrian Businesses?
- Retail Cyber Attacks: Cartier And North Face Are The Next Retailers Affected
- A Look At The Different Technologies Volvo Is Bringing To Its Cars
The Path Forward for Stripe and Lemon Squeezy
Neither company has yet provided details about exactly how this acquisition will pan out or what it means for the future of Lemon Squeezy, so all we can really do at this point is speculate based on Stripe’s recent activity in the market and the possible ways in which the two companies could join forces.
Stripe was launched in 2011, and over the last five years, it’s made some particularly big moves. Overall, the company has made a total of 14 acquisitions, with the majority of them having been made in 2021, the year in which the acquisition of Lemon Squeezy was started. This includes, among others, Supaglue and Okay.
This has all been part of their larger mission to eventually become not only a payment processor but a comprehensive financial infrastructure provider.
As such, their recent acquisitions have formed part of this effort to expand their capabilities and services, and it seems as though their purchase of Lemon Squeezy is going to help them move in that direction. The idea is to improve payment processing technology, broadening its current scope and capabilities.
Farr’s vision, from Lemon Squeezy’s perspective, is that together, they’ll be able to significantly” improve the merchant of record offering, bolstering billing support, building an even more intuitive customer experience, and more.”
In particular, they’ll be able to simplify a plethora of important tasks, including payments, subscriptions, fraud prevention and global tax compliance, among other things. By working together, Stripe and Lemon Squeezy will be able to make these services more easily accessible to SaaS and software businesses.
Some industry professionals believe that Stripe and Lemon Squeezy joining forces will result in a reduction in overall competition, as they will most likely be able to provide a payment service that is more inclusive and comprehensive than anything else currently in the industry.
However, it’s likely, if not inevitable, that this will change as the nature of Stripe and Lemon Squeezy’s relationship becomes evident in the near future. For now, we’ll just have to wait and see what their partnership allows them to offer customers and how other players in the industry react and respond.