South African fintech startup Stitch has announced a $25 million USD Series A extension led by Ribbit Capital. This round of funding takes the total funding secured by the company to $46 million.
Stitch is a payments service provider offering one powerful and reliable API built on direct integrations with multiple banks and networks across South Africa.
Stitch processes over 50 million payments annually, and over $2 billion in value, for some of the largest businesses operating in South Africa, including MTN and Multichoice.
The startup which was founded in 2021, raised $6 million in seed funding that same year, and quickly moved on to Series A with a $21 million round in February 2022. Since then it has expanded its offerings, launching the Stitch payments suite, and WigWag, a no-code payment links platform for small businesses.
The round was led by Ribbit Capital, and included existing investors including PayPal Ventures, The Raba Partnership and CRE Venture Capital. Several new investors have also joined, including 9 Yards Capital. This is Ribbit Capital’s third investment in Africa after leading Chipper Cash’s $30 million Series B and Wave’s $200 million Series A.
Stitch co-founder and CEO Kiaan Pillay said: “We’ve known the Ribbit team for a few years and have consistently been impressed with their knowledge of the space. In particular, they have a strong view of the global landscape, and their exceptional understanding of emerging markets has already proven to be immensely valuable,”
“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. 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.”
This funds will be used to continue building Stitch’s end-to-end payments solutions, and expand to serve more markets. Stitch currently has offices in Cape Town, Johannesburg and Lagos.