South Africa’s Stitch Secures $25m Series A Extension Funding

Stitch, the South African embedded payments platform, has closed a $25 million Series A Extension led by Ribbit Capital. The round was joined by existing investors including CRE Ventures, PayPal Ventures and the Raba Partnership. The latest fund brings the total series A funding round to $52 million over 5 rounds. It raised $21 million in February 2022.

Founded in 2019 by Kiaan Pillay, Natalie Cuthbert, and Priyen Pillay, Stitch provides full API access to financial accounts. Stitch Money allows users to share their transaction history and balances, confirm their identities, and initiate payments.

As per the company’s statement, this fresh injection of capital will strengthen its commitment to advancing its all-encompassing end-to-end payment solutions and expanding its service reach to encompass more international markets. While it is looking forward to expanding into new markets, it will also be doubling down on its commitment to South Africa.

The company is currently processing over 50 million payments annually, and over $2 billion in value, for some of the largest businesses operating in South Africa.

Kiaan Pillay, Stitch CEO said: “We moved away from being a single-method platform to a next-generation PSP for local and global enterprises. Initially, we just had a pay-in feature where we support bank and card payments. While we’ve added more, we now have an orchestration layer, which many enterprises use to manage payment methods and reconcile across different banks. And we do payouts, whether a disbursement, a refund, or a withdrawal. Our solution is attractive for global companies trying to enter the market for the first time because of the end-to-end process.”