Earlier this week, Stitch, a South Africa-based API company, announced it had raised $21m in a series of funding rounds. With the money, the startup is aiming to expand its financial technology capabilities and team. It has already built a database of over 3,000 financial companies and will continue to expand its offering.
Stitch raises $21m in a series a funding round
Stitch is an API infrastructure company that builds software for Africa’s growing fintech industry. It serves wallet-based businesses, e-commerce companies, payment aggregators, and subscription platforms.
The company recently raised $21 million in a series a funding round led by The Spruce House Partnership, Village Global, PayPal Ventures, and firstminute capital. The fund will be used to expand the company’s team, launch new product offerings, and enter new markets across Africa.
Stitch’s mission is to build an infrastructure to enable simple, seamless access to user financial accounts in Africa. Its products include an API that allows users to connect their bank and wallet accounts and perform one-click transactions, such as pay-ins and pay-outs. In addition, Stitch’s API also includes features such as fraud checks and income estimation assessments.
The company recently launched a payments solution in South Africa and plans to roll it out in other African countries. As of October, the product has seen a 50 percent increase in payments volume month over month, and the company expects to process $10 million in monthly payments by year’s end.
Stitch’s fintech capabilities
Stitch offers a payments infrastructure that allows fast growing businesses in Africa to build and deliver financial products. It also provides a data product that gives developers access to user’s financial data. With Stitch, users can make one-click payments through a number of different payment systems.
The company has offices in Cape Town and Johannesburg, South Africa. Stitch is serving a variety of companies, including financial service providers, payment aggregators, e-commerce and subscription businesses, and wallet-based companies.
As a fintech provider, Stitch helps businesses develop inclusive digital finance products. Whether the business is an e-commerce site or a subscription service, Stitch makes it easy to build a secure, scalable and inclusive payment solution. In addition to building a payment infrastructure, Stitch also provides software that enables the development of innovative financial products.
Stitch’s payment product enables customers to make payments through bank-to-bank transfers. Currently, Stitch works with five major banks in South Africa.
Stitch LinkPay allows businesses in Nigeria and South Africa to accept secure and low-cost payments. It eliminates chargebacks and provides frictionless payments.
Stitch’s technology
Stitch is a South African startup that will be making a big splash in the FinTech world. This API-based fintech company aims to make it easy for businesses across the continent to build financial solutions. The company is building the infrastructure to facilitate seamless payments, bank-to-bank transfers, and other e-commerce related services.
Stitch has raised a few million dollars in seed funding to date and has an aggressive expansion plan. Its latest funding round is led by a group of investors including the Spruce House Partnership, CRE Venture Capital, Village Global, PayPal Ventures, and TrueLayer. One of its latest moves is to add a payment API, which will make it easier for users to make and receive payments. Besides its main products, Stitch has also released consumer-facing apps, such as a money management app, which can be used by consumers to monitor their finances.
There is a growing crop of companies that are making the job of creating a functional API easier. These financial infrastructure firms provide a suite of tools and APIs for developers to use, thereby reducing the time and resources needed to build new applications.
Stitch’s team
Stitch is a fintech company that develops and manages an API that allows companies to connect financial accounts. Its infrastructure provides seamless transactions, reducing conversion time and the number of payments required.
Stitch is used by business clients for onboarding, financial management and KYC. In addition to serving wallet-based firms, the company also has customers including payment aggregators and subscription players.
Stitch plans to use its funding to expand its team and enter new markets across Africa. The company plans to process $10 million in monthly payments by year’s end. To facilitate these payments, Stitch launched a payments solution in South Africa in April 2021 and expanded to Nigeria in October.
Finally
The company’s payments product has experienced a 50 percent increase in payments volume month over month. Moreover, the number of linked financial accounts increased by 72% in the fourth quarter of 2021. By building a “financial graph,” Stitch will allow businesses to develop code once and launch in multiple markets. This enables businesses to scale more quickly, interoperate across different types of financial accounts and enable banks and providers to share data.
