In a time when global venture capital flows are tightening, Stitch, a South African fintech focused on modern payment infrastructure, is defying the odds.

The startup has raised $55 million in its latest funding round, bringing its total capital raised to $101 million since launching in 2019. The news isn’t just a milestone for Stitch; it’s a strong signal that investor confidence in African fintech remains resilient and focused on long-term value creation.

A Testament to Investor Faith in Africa’s Fintech Evolution

What makes this funding round especially noteworthy is the continued participation of existing investors, including Raba Partners, an Africa-focused VC firm that contributed $4.2 million.

Their consistent backing suggests deep conviction, not just in Stitch’s trajectory but in the broader transformation of Africa’s digital economy.

Raba Partners, which recently closed its second fund at nearly $60 million, has made calculated bets on fintech disruptors across the continent.

Its portfolio includes other high-growth ventures such as Egypt’s Octo and Nigeria’s Moment, both of which are tackling financial access and infrastructure. That Stitch sits alongside them speaks volumes about its growing relevance in the African payments space.

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Building More Than Just a Payments API

Founded by Kiaan Pillay, Natalie Cuthbert, and Priyen Pillay, Stitch started as an open banking API provider, allowing businesses to securely link with users’ bank accounts to initiate and manage payments. But today, it’s so much more.

Through strategic product expansion, Stitch has built a unified payments platform that allows businesses to manage transactions seamlessly, whether online or in person.

The platform enables enterprises to simplify integration, offer diverse payment options, and reduce reliance on third-party processors. In doing so, Stitch is setting out a position in a market that demands both speed and flexibility.

A Bold Leap Into Physical Payments

In January 2025, Stitch took a major advance by acquiring Exipay, a provider of in-person payment solutions. While the acquisition amount remains undisclosed, its impact is clear.

Now rebranded as Stitch In-Person Payments, the service extends Stitch’s reach to the offline world, targeting industries like retail, hospitality, and logistics where hybrid transaction models are essential.

This move allows Stitch to offer end-to-end payment services, covering everything from digital checkouts to point-of-sale terminals.

Clients like MTN, MultiChoice, and Standard Bank’s SnapScan are already leveraging these capabilities, hinting at the scale and reliability Stitch brings to enterprise payments.

By integrating Exipay’s infrastructure, Stitch is promising faster settlement times, improved system reliability, and a lower dependence on external vendors, key differentiators in a fragmented and infrastructure-challenged ecosystem.

Funding Momentum Despite Market Slowdowns

Stitch’s fundraising history showcases a steady upward trajectory. From an initial $4 million seed round in 2021, followed by a $21 million Series A in 2022 and a $25 million Series A extension in 2023 led by Ribbit Capital with PayPal Ventures and CRE Ventures joining in the company has consistently attracted world-class investors.

Now, with an additional $55 million to scale, Stitch is equipped to further accelerate its product roadmap and market expansion.

What’s particularly impressive is that this growth comes at a time when venture capital is harder to secure, especially in emerging markets.

In 2023, fintech still accounted for nearly half of all startup funding in Africa, but total volumes declined amid global economic uncertainty. Stitch’s ability to overcome that trend is a testament to its compelling value proposition and strong execution.

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A Market That’s Growing, but Still Complex

While the opportunity is huge, the African fintech landscape isn’t without its challenges. The regulatory environment is highly fragmented, with different compliance standards across regions.

Competitors like Flutterwave and Paystack have already laid strong regional foundations, and Stitch will need to navigate these waters carefully to scale effectively.

Execution is key, particularly in delivering consistent, secure experiences across multiple markets with varying infrastructure and consumer behaviours.

But CEO Kiaan Pillay remains clear-eyed about the mission: “The goal is to build the rails that power Africa’s digital economy,” he said in a recent statement.

Stitch as a Model for Africa’s Fintech Future

Stitch’s latest round isn’t just about more capital; it’s a signal of validation. Validation that Africa’s fintech sector is moving beyond hype to maturity.

That infrastructure players like Stitch are laying the groundwork for a financial ecosystem that is more inclusive, efficient, and resilient.