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    Friday, February 18, 2022

    Stitch Secures $21m Series 'A' Funding to Build Infrastructure for African FinTechs

    API Fintech company, Stitch, has secured $21 million Series ‘A’ funding round, led by The Spruce House Partnership, to support its financial infrastructure project for the African Fintech sector.

    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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