A $25 million Series A extension led by Ribbit Capital was announced today by the South African payments infrastructure start-up Stitch. With this, Stitch has now raised $52 million in total.
The fintech will use the funds to keep improving its end-to-end payment solutions, which it claims are made to accommodate the expanding payment requirements of its clients who work for multinational corporations. Additionally, the fund will be utilized to increase its footprint across Africa.
Along with Ribbit Capital, former backers including PayPal Ventures, The Raba Partnership, and CRE Venture Capital have confirmed their commitment, while a slew of new backers like 9 Yards Capital has also joined.
Kiaan Pillay, co-founder and CEO of Stitch, noted that Ribbit was well known and had a special grasp on emerging markets. The CEO noted that he has always been amazed by how well-versed they are in the industry, as they have a clear understanding of the global startup scene.
Streamlining the creation and expansion of new financial solutions for African businesses has always been a priority for Stitch. By providing APIs, the firm aims to greatly reduce the challenges of building across African geographies.
Currently, some of the top fintech businesses in Africa, such as Paystack, Chipper Cash, Zapper, Yoco, and FlexClub, have chosen Stitch as their API partner. Players in the traditional insurance market, like Sanlam, also make use of the Stitch API.
Stitch offers a single API that makes it easy for developers building digital financial solutions to include features that are normally difficult to design, like accessing user financial data and providing a seamless and immediate payment experience. This enables fintech companies and developers to concentrate on producing amazing user experiences.
Companies including MTN, Multichoice, The Foschini Group, SnapScan from Standard Bank, and Yoco have all started using Stitch infrastructure since the platform’s commercial launch. Stitch’s most recent funding is a testament to the growing interest of investors in the startup’s goal of totally digitizing Africa’s financial sector.