South African startup up Stitch bags $21m from PayPal and TrueLayer in funding round

By John Reynolds on Monday 14 February 2022

Digital Banking

Stich says it will use the funds from the Series A funding round to expand into new markets and launch new products.

South African startup up Stitch bags $21m from PayPal and TrueLayer in funding round
Image source: Stitch team.

South African startup Stitch has bagged a $21m funding round, luring in PayPal and TrueLayer as new investors.

The API-focused fintech has conducted a Series A funding round which was led by New York’s Spruce House Partnership.

Other investors in the round are PayPal Ventures, TrueLayer, firstminute capital, The Raba Partnership, CRE Venture Capital, Village Global, Zinal Growth and the founders of Chipper Cash, Quovo and Unit.

Stich says it will use the funds from the funding round to expand into new markets and launch new products.

Founded in 2019, Stitch’s APIs help businesses to build and scale up financial products.

For example, its APIs link users’ financial accounts to initiate bank transfers and verify account information.

In total, Stitch has raised $27m to date.

“We are incredibly fortunate to be supported by some of the best investors, founders and builders in the fintech space globally,” said Stitch co-founder and CEO Kiaan Pillay. 

“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.”

Stich’s customers include companies like Chipper Cash, Luno and Zapper, financial services providers like ImaliPay and subscription and e-commerce players like FlexClub.

Startups in Africa raised a record $4 billion in 2021, with the vast majority (estimated to be 62 per cent) going to fintechs, according to industry figures.

“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,” said Ben Stein, co-founder of The Spruce House Partnership.

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