Stitch, a Fintech Focused on Financial Infrastructure, Acquires $21M via Series A

Stitch is building the financial infrastructure to support Africa’s Fintech industry.

Stitch has raised $21 million via an investment round led by The Spruce House Partnership, along with contributions 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.

API fintech Stitch confirmed that their Series A was led by The Spruce House Partnership. Stitch will use the proceeds to further build out the future of money movement by linking bank accounts, wallets and other stores of value, “creating what it refers to as the ‘financial graph.'”

Its payments and data infrastructure supports businesses across the fintech ecosystem — which has been quite fragmented by technical, commercial and political barriers — “to transact seamlessly, expand their revenue and growth potential, and significantly reduce conversion time and cost.”

Stitch co-founder & CEO 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’re seeing in financial technology on the continent. Across the hundreds of customers we work with, big and small, we’re 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.”

As noted in the update, businesses interested in using Stitch may get started right away via its self-service portal. The Stitch API allows businesses to access and link their users’ financial accounts to:

  • Initiate secure bank transfers for one-click pay-ins and payouts.
  • Access standardized and categorized transaction history and balance data, for affordability checks and income estimation assessments.
  • Verify account information and ownership, to enable faster and more user-friendly digital onboarding, and to perform fraud checks.

Startups in Africa raised an all-time record $4 billion last year, with the majority (estimated 62%) going to fintechs.

Stitch serves these businesses, “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.”

As embedded finance continues to gain traction and further adoption of digital finance solutions, the opportunity “to provide foundational software that can enable businesses to launch, optimize and scale fintech solutions will only accelerate.”

Ben Stein, co-founder of The Spruce House Partnership, added:

“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.”

For more details on this announement, check here.



Sponsored Links by DQ Promote

 

 

Send this to a friend