The round was led by The Spruce House Partnership, with
participation from PayPal Ventures, TrueLayer, firstminute capital, The Raba
Partnership, CRE Venture Capital, Village Global, Zinal Growth (the investment
vehicle of Checkout.com founder Guillaume Pousaz) and others, including
founders of Chipper Cash, Quovo and Unit.
Announcing the feat, co-founder and CEO of Stitch, Kiaan
Pillay, said: “We are incredibly fortunate to be supported by some of the best
investors, founders and builders in the Fintech space globally.
They are working closely with us to enable the boom we are
seeing in financial technology on the continent. Across the hundreds of
customers we work with, big and small, we are witnessing a record pace of
development of new financial products. Our goal is to help fast-growing Fintech
and embedded finance companies more easily launch increasingly innovative and
tailored products, expand into new markets and optimize their solutions, so
they can grow even faster.”
Also, co-founder of The Spruce House Partnership, Ben Stein,
said: “We have been following startups in Africa for many years. Our diligence
was very clear that this is one of the most talented teams on the continent,
and we are excited to be a part of what they are building at Stitch.”
The Stitch API enables businesses to easily access and link
their users’ financial accounts to initiate secure bank transfers for one-click
pay-ins and payouts. It also helps to access standardised and categorised
transaction history and balance data, for affordability checks and income
estimation assessments, as well as verify account information and ownership, to
enable faster and more user-friendly digital onboarding, and to perform fraud
checks.
Startups in Africa raised a record $4 billion in 2021, with
the vast majority, estimated at 62 per cent going to fintechs, and Stitch
serves these fast-growing businesses. Its services ranges from wallet-based
companies like Chipper Cash, Luno and Zapper, to financial services providers
like ImaliPay, to subscription and e-commerce players like FlexClub, to PSPs
and payment aggregators like Peach and Yoco.
Director at PayPal Ventures, Ashish Aggarwal, said: “Stitch
is building critical infrastructure to enable faster, easier and more secure
payments across Africa. We believe they will play a significant role in
contributing to the overall growth of the Fintech space in Africa, and we are
excited to be investing at this important moment in their journey.”
In the last quarter alone, the company saw 44 per cent
Manager of Managers (MoM) customer growth and a 72 per cent MoM increase in
linked financial accounts on the platform. It had 104 per cent MoM growth in
payments value since its launch.
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