Stitch, a South African fintech company, secured additional $55 million in funding, according to a statement released April 10.
The company aims to strengthen its position in Africa’s rapidly evolving payments sector by enhancing its end-to-end payment solutions. With this latest round, Stitch has now raised a total of $101 million to tackle payment inefficiencies and interoperability challenges across the continent.
Stitch, established in 2019 by Kiaan Pillay, Natalie Cuthbert, and Priyen Pillay, specialises in payment infrastructure and open banking. Its technology facilitates the secure connection between businesses and users’ financial accounts, simplifying transactions for enterprise and e-commerce clients. Major African enterprises, including MTN, MultiChoice, and Standard Bank‘s SnapScan, are among the company’s clients.
As Kiaan Pillay, Sti tch CEO and co-founder, noted, “The goal is to build the rails that power Africa’s digital economy.” This vision aligns with Stitch’s recent expansion efforts, including the acquisition of payment provider Exipay earlier this year. The acquisition marked Stitch’s entry into the in-person payments market, with Exipay’s platform rebranded as “Stitch In-Person Payments.”
Stitch expansion and investment details
Raba Partners contributed $4.2 million to the $55 million investment round, which existing investors backed. This investment shows Raba’s ongoing faith in Stitch’s potential for expansion.
Stitch has a track record of successfully generating funds to fund its growth. In February 2021, it obtained $4 million in startup finance, and in October 2021, it obtained a $2 million seed extension. In February 2022, Stitch announced a $21 million Series A investment round sponsored by Ribbit Capital, which was expanded by an additional $25 million in October 2023.
Stitch will use the money to expand into new African markets and improve its APIs for enterprise-grade finance solutions. This strategy helps Stitch compete in a congested fintech sector where Flutterwave and Paystack have expanded.
Stitch’s capital raising shows its potential to alter African payments despite regulatory hurdles and competition.