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How a small 4-person startup Supaglue caught Stripe’s attention

In Stripe’s annual letter, the company discussed several fast-growing areas, one of which is its “revenue and financial automation” division. These tools help businesses manage billing, taxes, and revenue recognition. Stripe said the RFA unit will hit $500 million in annual revenue this year.

As part of its investment in RFA, the payments giant completed the “acquisition” of Supaglue’s four-person team for an undisclosed amount. Supaglue raised a $6.8 million seed round in November 2021, led by Benchmark general partner Chetan Puttagunta. (Puttagunta did not respond to TechCrunch’s request for comment.)

Supaglue, formerly known as Supergrain, is an open source developer platform for user integration. Meanwhile, Stripe has been working on real-time analytics and reporting across its platform and third-party applications in its revenue and financial automation suite. A Stripe spokesperson told TechCrunch that the team will help speed up the process.

George Xing and Thomas Chen founded Supaglue in 2021 after working on data teams at Lyft and Uber. There, Xing told TechCrunch, they realized that managing data and business metrics across teams was inconsistent and fragmented, which could lead to bad decisions and even worse business outcomes.

So they developed a product that helps companies import and centralize customer data from third-party data sources, such as Salesforce or other customer relationship management systems, into their own applications.

How did a small startup with just four people catch the attention and takeover offer from the mighty Stripe? The two were introduced to each other by acquaintances at work, although Xing and Chen described their encounter with Stripe as “very accidental.” After introductions from people in their extended network, and since Supaglue was also doing a lot of integration work, the two companies started talking, and when Stripe offered to buy them, they accepted.

“An important component of the RFA suite is also a unified data platform that harmonizes data for each product and delivers relevant insights to Stripe’s end-users through dashboards, alerts, customer reports and real-time analytics. This is relevant to our initial solution The problems are very similar,” Xing said.

The Supaglue acquisition is one of many things that have happened for Stripe so far this year. Between employee stock sale deals, partnerships with companies like certification startup Clerk and electric boat startup Navier, the company has been very busy. Considering the growth Stripe mentioned in its annual letter, Supaglue may soon find fast friends in Stripe’s ecosystem.

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