Stitch has secured a new funding to expand its in-person payment offerings, improve its online payment suite, and facilitate its entry into card acquiring in South Africa. The company, which was co-founded in 2021 by Kiaan Pillay, Junaid Dadan, and Matthew Flannery, has secured $107 million in total fundings since inception.
The latest investment, $55 million in a Series B round, will be utilized to the company's in-person payment offerings, enhance its online payment suite, and facilitate its entry into card acquiring. The round was led by QED Investors, with participation from Norrsken22, Flourish Ventures, Glynn Capital, and notable angel investors, including comedian Trevor Noah.
Existing investors like Ribbit Capital, PayPal Ventures, Firstminute Capital, and The Raba Partnership also participated in the $55 million series B funding round. This funding round signifies Stitch's commitment to scaling its operations and solidifying its position in the African fintech landscape.
Stitch's Mission
Earlier this year, Stitch acquired Exipay to expand its in-person payments, and and also (to) advance it's online payments suite so that merchants can get all the tools necessary to collect payments from their customers. Now, the company plans on using the funds to build on ExiPay to enhance its capabilities in facilitating face-to-face transactions.
Secondly, Stitch want to use the funds to become a direct card acquirer which will allows the company to process card transactions directly, without relying on third-party banks or infrastructures. When this is achieved, the company will be able to offer its merchanta an end-to-end card product with full control over the whole product lifecycle while reducing the number of intermediaries and lowering costs.
Furthermore, the company intends to invest in robust infrastructure to ensure seamless payment processing in the sense of maintaining multiple payment processing networks and systems to automatically detect failures and switch to backups. This will eliminates uninterrupted service, and improve service levels. Enhancements in infrastructure are also targeted at improving payment processing methods and overall service quality.
