South African Fintech Stitch Secures $55 Million to Expand Across Africa

In a significant development for the African fintech space, South Africa-based Stitch has successfully raised $55 million in its latest funding round. This strategic investment is set to bolster the company’s expansion efforts across Africa, cementing its role in transforming the continent’s payment solutions landscape.

Founded in 2019 by Kiaan Pillay, Natalie Cuthbert, and Priyen Pillay, Stitch has quickly emerged as a key player in the fintech industry. Headquartered in Cape Town, the company offers a unified payments platform designed to simplify financial transactions for businesses operating across multiple institutions. The funding will support Stitch’s mission to enhance its end-to-end payment solutions, improving operational efficiency and the overall customer experience for businesses across Africa.

Strategic Funding to Fuel Growth

The latest funding round saw contributions from several investors, including Raba Partnership, an African venture firm that added $4.2 million. This highlights ongoing investor confidence in Stitch’s business model and growth potential. The funding will allow Stitch to continue its expansion, extending its reach to more African markets and enhancing its service offerings.

Stitch’s previous rounds of investment have been equally impressive. In 2021, the company raised a $4 million seed funding, followed by an additional $2 million in seed extension. In February 2022, Stitch secured a substantial $21 million in Series A funding, with support from PayPal Ventures and other renowned investors. Most recently, in October 2023, Stitch raised $25 million in a Series A extension, bringing its total Series A funding to an impressive $46 million.

Acquisition of Exipay: A New Chapter in Payments

In addition to the new funding, Stitch has recently made headlines with its acquisition of Exipay, a leading payment solution provider. This move expands Stitch’s product offering into the in-person payments market, allowing it to cater to large enterprises that manage physical transactions. Exipay’s platform will now be rebranded as “Stitch In-Person Payments,” demonstrating the company’s commitment to providing comprehensive solutions for businesses of all sizes.

A Growing Impact on Africa’s Financial Landscape

With its expanded funding and new product offerings, Stitch is well-positioned to shape the future of payments in Africa. The company’s innovations address the unique challenges of the African market, where financial inclusion and efficient transaction processing are critical to economic development. As Stitch continues to grow, its influence on the continent’s fintech ecosystem is set to expand, driving further adoption of digital payment solutions and fostering economic growth.

This $55 million funding round is just the latest milestone in Stitch’s journey, and its success serves as a reminder of the immense potential within Africa’s fintech sector. With continued investment and innovation, Stitch is poised to make a significant impact on Africa’s financial infrastructure, paving the way for a more inclusive and efficient payments landscape.