After raising $21 million in 2022, Stitch has secured an additional $25 million in funding, bringing its total Series A funding to $46 million.
Ribbit Capital led the round, with participation from existing investors such as CRE Ventures, PayPal Ventures, and the Raba Partnership.
The South African API fintech startup, which came out of stealth in 2021, claims to have created an end-to-end payment solution built to meet its clients’ complex and evolving payment needs. So, it wants to use the funds to dominate the payment market.
Stitch, founded by Kiaan Pillay (CEO), Natalie Cuthbert, and Priyen Pillay, focuses on empowering companies to create, optimise, and scale financial products and provides API gateways to increase online payment conversion and streamline payment processes for its clients.
Essentially, Stitch was a data, bank-to-bank payments platform before going on a feature release binge. Its customers, who ranged from businesses to sole proprietors, could access their financial accounts and innovate around offering services like personal finance, lending, insurance, payments, and wealth management.
It currently provides a service for full payments. Customers can accept payments via pay-by-bank, debit and credit cards, recurring debits, cash, and manual bank transfers. They can also use PayOS to manage, orchestrate, and reconcile payments across various providers, geographies, and payment methods in one dashboard. Finally, customers can distribute money using payouts.
Stitch claims that its enterprise businesses, including MTN, MultiChoice, Yoco, and Standard Bank’s SnapScan, in South Africa are the main customers for its end-to-end payment solutions.
The AP fintech says its platform gives users dependability, higher uptime, and quicker problem resolution by eliminating middlemen and using direct connections with banks and networks.
Stitch provides customer support in addition to open banking features, localised insights into the payments landscape, and co-created, tailor-made solutions to streamline the sending, receiving, and managing of money processes.
Its subsidiary, WigWag, enables small companies and micro-influencers who sell products and services on social media platforms to accept payment via a link and card.
According to Pillay (CEO), the company still has a few startups and small businesses as clients in Nigeria and other African nations where it is authorised to conduct business.
In October 2021, the fintech announced its expansion into Nigeria and a $2 million seed extension from Future Africa and Norrsken Foundation, among others.
The fintech, which competes with Mono, Okra, Revio, and MoneyHash, also provides services to international PSP partners and is negotiating similar agreements with several consumer Internet companies.
Expectedly, the company will process more than 50 million transactions by 2023, amounting to $2 billion in total payment volume (TPV). These figures are across seven product features Stitch has launched since 2022.