Local fintech firm Stitch raises R1bn in three years

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 03 Oct 2023
The Stitch team.
The Stitch team.

South African fintechfirm Stitch continues to attract funding, with the start-up today announcing $25 million (R483 million) in seed extension.

This brings Stitch’stotal seed funding to $52 million (R1 billion) in three years, after raising $21 million (R405 million) in February 2022, and $6 million (R116 million) in 2021.

The latest Series A funding round was led by San Francisco-based Ribbit Capital, to enable the start-up to continue building end-to-end payments solutions and expand to additional markets.

The round also saw participation from existing backers, including CRE Venture Capital, PayPal Ventures and The Raba Partnership, as well as new investor 9 Yards Capital.

“We’ve known the Ribbit team for a few years and have consistently been impressed with their knowledge of the space,” says Stitch co-founder and CEO Kiaan Pillay.

“In particular, they have a strong view of the global landscape, and their exceptional understanding of emerging markets has already proven to be immensely valuable.

“We couldn’t be more excited to welcome Ribbit and to receive additional support from partners that have been a significant part of our journey thus far. We’ve seen substantial growth since we emerged from stealth just over two years ago, and we look forward to finding more ways to anticipate and address the needs of the large, global enterprises we serve as the payments landscape continues to evolve.”

Stitch is a South African-based application programming interface firm launched in February 2021, with offices in Cape Town and Johannesburg, and Lagos, Nigeria.

The fintech company enables businesses to more quickly and easily build, optimise and scale financial products across Africa.

It offers data and payments solutions that reduce the effort required for businesses to connect to their users’ financial accounts and enable bank-to-bank payments without leaving the existing app interface.

Stitch counts companies such as MultiChoice, MTN, The Foschini Group, Standard Bank’s SnapScan and Yoco among its enterprise clients. Its infrastructure also powers global payments service provider partners and global consumer internet companies.

Since its first seed round in 2021, the start-up says it has launched seven products, evolved into a full payments service provider and grown its team to over 80 people.

It notes its clients rely on it to accept payments via pay-by-bank, debit and credit card, manual bank transfer, recurring debits and cash, and easily disburse funds via payouts.