Stripe Acquires Lemon Squeezy to Expand Merchant of Record Services
Payments industry leader Stripe has announced the acquisition of Lemon Squeezy, a specialized platform for managing merchant of record (MoR) operations for digital products. The deal, the terms of which were not disclosed, marks Stripe’s continued expansion into the complex world of global commerce.
Lemon Squeezy, founded in 2020, has carved a niche for itself by handling the intricacies of sales tax calculation, payment processing, and legal compliance for SaaS and software businesses operating internationally. By assuming the role of merchant of record, the company alleviates the burden of tax complexities for its clients.
Stripe’s acquisition of Lemon Squeezy is a strategic move to bolster its MoR capabilities. As Patrick Collison, CEO of Stripe, stated on X, the company intends to significantly scale its merchant of record offerings. This acquisition aligns with the increasing demand from businesses for comprehensive payment solutions that simplify global operations.
Lemon Squeezy co-founder and CEO, JR Farr, expressed enthusiasm about joining forces with Stripe, highlighting the company’s rapid growth and the alignment of both companies’ visions.
While specific financial details remain undisclosed, Farr revealed that Lemon Squeezy achieved an annual recurring revenue of $1 million within nine months of its public launch in 2021.
This acquisition is the latest in a series of strategic moves by Stripe to strengthen its position in the payments ecosystem. The company previously acquired the team behind Supaglue, a developer platform, and Okay, a low-code analytics software startup.
These acquisitions underscore Stripe’s commitment to innovation and its focus on providing a comprehensive suite of tools for businesses of all sizes.
As Stripe integrates Lemon Squeezy’s expertise, the combined entity is poised to offer enhanced MoR services, simplifying cross-border commerce for businesses worldwide.
