Stitch, a paytech based in South Africa, has closed a $25m series A extension, with Ribbit Capital taking the lead. The extension builds on its $21m series A round last year.
Since launching two years ago, Stitch has increased its presence in the payments space, handling more than 50m payments annually, totalling $2b in value. Notably, some of the largest corporations operating in South Africa, including MTN, Multichoice and The Foschini Group, rely on Stitch’s services.
Stitch has transformed from a single payment provider to an end-to-end payments solution, offering multiple pay-in and payout options.
This evolution has been driven by a strategic decision to focus on the complex payments needs of large enterprises. By doing so, Stitch aimed to tailor them for small businesses. This pivot has resulted in the recent launch of a simplified product designed for SMEs, now operating as a spin-out brand under the name WigWag.
In a statement on its website, Stitch emphasised its commitment to meeting clients’ needs in a customised manner. Their customer success team provides guidance throughout every step of the client’s journey, the client solutions team designs custom integrations, and their engineering and product teams focus on client feedback and requirements.
The fintech landscape is evolving, with an increasing variety of payment methods gaining traction. Stitch recognised the importance of offering multiple payment options to cater to the diverse needs of merchants. Additionally, in a world where businesses often operate across many countries, the paytech is well-positioned to provide flexible solutions that seamlessly integrate with various platforms, allowing merchants to use different providers as needed.
Looking ahead, Stitch has ambitious plans to grow with its clients, expanding its coverage of their payment needs and venturing into new markets. International payments can be complex, but Stitch is poised to address these challenges.
While Stitch has global aspirations, it remains committed to its home market of South Africa. The company sees potential within the country, given its highly banked population, flourishing open banking ecosystem, sizeable population with extensive internet and mobile penetration, and its status as an attractive destination for businesses looking to launch in Africa.