South African fintech, Stitch secures $25 million Series A extension

Stitch has secured a $25 million Series A extension in a round led by Ribbit Capital. The funds will be used to further develop its all-encompassing payment solutions.

Stitch $25 million Series A extension
The Stitch team 

Stitch, a South Africa-based payments infrastructure company today announced a $25 million Series A extension in a round led by Ribbit Capital.

This marks the venture firm's third investment in Africa, following its support for Chipper Cash's $30 million Series B and Wave's $200 million Series A rounds. Ribbit Capital, in its seventh fund last year, secured $1.15 billion dedicated to supporting fintech startups.

Its existing investors including PayPal Ventures, The Raba Partnership and CRE Venture Capital also participated in the round, a statement by the startup says that "several new investors" also joined, including 9 Yards Capital.

“We couldn’t be more excited to welcome Ribbit and to receive additional support from partners that have been a significant part of our journey thus far,” says Kiaan Pillay, Stitch’s co-founder and CEO. “We’ve seen substantial growth since we emerged from stealth just over two years ago, and we look forward to finding more ways to anticipate and address the needs of the large, global enterprises we serve as the payments landscape continues to evolve.”

Recall that last year, Stitch announced a $21 million Series A. This latest funding brings the fintech's total funding to $52 million since its launch in October 2019 by Kiaan, Priyen Pillay and Natalie Cuthbert.

The funding will be employed by Stitch to further develop its all-encompassing payment solutions, specifically crafted to address the intricate and ever-changing payment requirements of its worldwide enterprise customers. Additionally, it will facilitate the company's expansion into additional markets to broaden its reach.

According to Kiaan “Everything we do is client-focused. We’ll continue to optimize for what they have. And then scale geographically with them and deeper in products they already have.”

“We also want to continue adding as many first-party payment methods as possible. Our value proposition has been precision engineering and deep infrastructure, so, for instance, we are looking at connecting to card and bank rails without intermediating. Things like this are often slow and capital intensive; that’s why we raised,” he added.

Presently, Stitch primarily caters to enterprise businesses by providing comprehensive payment solutions. Key clients, including MTN, Multichoice, The Foschini Group (TFG), Standard Bank's SnapScan, and Yoco, depend on Stitch for various payment processing needs.

Stitch enables its clients to: accept payments through Pay by bank, Debit + Credit Card, Manual bank transfer, Recurring debits, and Cash, streamline and reconcile payments across various methods, providers, and geographic locations using the unified PayOS dashboard; and seamlessly distribute funds through Payouts.

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