South African FinTech company Stitch has announced that it has landed $25m in a funding round as it looks to become a leader in the global payments landscape.
The Series A funding was led by Ribbit Capital, a prominent global fintech investor. This recent injection of capital brings Stitch’s total Series A funding to an impressive $46m. Notably, existing backers, including CRE Ventures, PayPal Ventures, and the Raba Partnership, also participated in this funding round.
Stitch focuses its efforts on empowering businesses to create, optimise, and scale a wide range of financial products. Additionally, it provides essential API gateways that enhance the efficiency of online payments and streamline payment operations for its clients. This fintech company, headquartered in Cape Town, has made significant strides in facilitating financial innovation and seamless transactions.
The newly acquired funding will play a pivotal role in Stitch’s ongoing expansion and innovation efforts. The company has outlined its plans to further develop its platform, expand its customer base, and explore opportunities to serve new markets. This commitment to client-centric solutions and continuous optimisation underscores Stitch’s dedication to providing reliable and efficient financial services.
Ribbit Capital’s participation in this funding round marks its third investment in Africa. Previously, Ribbit Capital led investments in Chipper Cash’s $30m Series B and Wave’s $200 million Series A. Stitch’s Co-founder and CEO, Kiaan Pillay, expressed gratitude for having prominent local and international backers like Ribbit Capital since Stitch emerged from stealth mode in 2021. In the current venture capital climate, characterised by a focus on tangible growth figures, this strategic alignment with Ribbit Capital signifies an important milestone for Stitch.
Stitch has demonstrated robust growth, with projections indicating that the company is on track to process over 50m transactions, amounting to $2bn in total payment volume (TPV) for the year. These remarkable figures reflect Stitch’s successful launch of seven product features since early 2022. The company has evolved from a quasi-data, quasi-bank-to-bank payments platform into a full payment service provider. Stitch’s comprehensive solutions include accepting payments via various methods, managing and reconciling payments across multiple platforms, and facilitating fund disbursements.
While Stitch primarily offers its end-to-end payment solutions to enterprise businesses in South Africa, it also serves startups and small businesses in Nigeria and other African countries where it holds licenses to operate. This flexibility is one of Stitch’s key strengths, allowing it to cater to a wide range of clients, from local enterprises to global consumer internet companies.
South Africa holds a unique position in the African market, often regarded as the gateway to the continent. Its well-established credit card system simplifies card integration for businesses. However, Stitch’s value proposition becomes especially crucial in markets where cards are less prevalent, providing alternative payment options.
Stitch differentiates itself by offering better reliability, higher uptime, and faster problem resolution through direct connections with banks and networks, eliminating intermediaries. Additionally, the company provides client support, localised insights into the payments landscape, and customised solutions tailored to simplify fund management.
With over $52m in venture capital funding, including a $6m seed round, and a team of more than 80 employees, Stitch is poised to continue its journey of growth and innovation. The company’s CEO, Kiaan Pillay, reaffirmed their commitment to client-focused solutions and geographic expansion. Stitch aims to enhance its value proposition by adding more first-party payment methods, emphasising precision engineering and deep infrastructure in its operations.
It’s worth noting that prior to this funding round, Stitch had already raised a total of $52m in venture capital, including the initial $6m seed funding.
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