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Stitch, a South African Company, has Successfully Raised $55 Million in a New Funding Round
A South African fintech company, Stitch, has raised $55 million in a new funding round. The Cape Town startup seeks to revolutionize payment solutions across the entire continent by achieving this investment round. The money will help Stitch grow its services and strengthen its position in the fast-growing fintech sector on the continent.
Founded in 2019 by Kiaan Pillay, Natalie Cuthbert and Priyen Pillay, Stitch offers companies a dedicated payments platform offering that allows easy transactions across multiple banks and institutions. Stitch makes it easier for businesses to manage payments helping to improve customer experience and operational efficiencies.
With the newly obtained funding, Stitch intends to develop its start-to-finish payment options and expand to other markets across Africa. The 55 million dollars fundraising round had a compulsory inclusion of several investors. This demonstrates a lot of confidence in Stitch to innovate and grow in African fintech.
The company has a great history of getting investments. In 2021, the startup secured $4 million in seed funding and more $2 million in a seed extension for its expansion to Nigeria. In 2022, the company raised a Series A funding round led by The Spruce House Partnership, with participation from PayPal Ventures and others, for $21 million. By October 2023, Stitch raised another $25 million in a Series A extension led by Ribbit Capital, bringing its total Series A funding to $46 million.
Stitch’s growth hasn’t been limited to funding alone. Earlier this year, the company acquired Exipay, a payment solutions provider that specializes in in-person transactions. This purchase allowed Stitch to introduce “Stitch In Person Payments” for large businesses dealing in-person payments. This shows that stitch is dedicated to fulfilling different payments needs of africans businesses.
The company introduced LinkPay, one of the many innovative solutions, which allows tokenization of financial accounts for recurring payments and WigWag, an easy-to-use no-code product for small businesses devoid of developers or websites. Stitch’s offerings show they can serve both big companies and the little sellers that need easy digital payment options.
Stitch has acquired a solid reputation with enterprise clients, including MultiChoice, MTN, Standard Bank’s SnapScan, and Yoco banks. It engaged diverse partner types via its tech platform, enabling businesses to accept payments from methods such as bank transfers, debit and credit cards, recurring debits, and cash. Businesses can manage transactions via the PayOS dashboard. Besides, businesses can quickly send money using Stitch’s payout tools.
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With the evolving payment landscape in Africa, Stitch is in a good position to help businesses evolve and enhance their payment offerings. With new support from tech and cash, the company is offering solutions to businesses that are unable to access the right tech stack. Companies are finding it expensive to integrate banks, multiple payment processors, and other services.
With this new funding round of $55 million, Stitch will make payment easier for these firms. The company is succeeding because it meets a real problem and is able to get required bank investment and venture capital funding.
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