Funding Boost for Stitch: $50M Series B Investment to Scale Payment Services Throughout Africa
Stitch Secures $55 Million Series B Funding for Expansion and Innovation
In an exciting development for the payment industry, Stitch, a leading fintech company, has raised $55 million in its Series B funding round. The investment, announced in April 2025, will support significant planned expansions, including enhancing payment solutions and expanding product offerings.
The new funding will be used to enter the acquiring space, a strategic move that will allow Stitch to offer its clients a comprehensive card product, giving them control over the entire product lifecycle. This foray into acquiring demonstrates Stitch's commitment to continuous innovation and growth in the payment industry.
Stitch's expansion into the acquiring space will be a significant step in its goal to become a comprehensive payment solutions provider. The company's upcoming foray into acquiring will also enable it to offer in-person card and alternative payment options for enterprises and retail businesses.
In a related development, Stitch has acquired Efficacy Payments to secure direct card acquiring capabilities in South Africa. This move marks Stitch's entry into card processing as a clearing system participant, making it one of the few fintechs in South Africa with that status.
The acquisition of Efficacy Payments is not the only one Stitch has made recently. In January, the company expanded its offerings by acquiring ExiPay, rebranded as "Stitch In-Person Payments." This acquisition will enable Stitch to offer a wider range of payment solutions, including in-person payment options.
Stitch's payment solutions are already in use by major enterprise businesses across South Africa, including Takealot, Mr. D, MTN, Vodacom, Standard Bank's Shyft, TFG's Bash, Hollywoodbets, Luno, The Courier Guy, and others. The new acquiring service will broaden Stitch's scope, allowing it to serve an even wider range of businesses.
The specific details of the terms of the new funding for Stitch's acquiring service were not disclosed. However, it is known that the new funding will further strengthen Stitch's online payment services.
In addition to the new funding, Stitch has also introduced Express, a simplified checkout solution, for online businesses of all sizes across e-commerce platforms like Shopify and Woo. The Express checkout solution is planned for launch in early 2025, making it available to a wider range of online businesses.
Stitch made its public debut in February 2021. Since then, it has raised a total of $107 million in funding. Glynn Capital, Flourish Ventures, and Norrsken22 participated in Stitch's funding round, joining existing investors such as Ribbit Capital, PayPal Ventures, The Raba Partnership, and Firstminute Capital.
Overall, the Series B funding is fueling Stitch's growth to deepen its fintech footprint in the African market. The company aims to improve transaction conversion, reconciliation capabilities, and access to advanced payment technologies for merchants by broadening its payment product suite and infrastructure capabilities to better serve businesses across online and offline channels.
The new funding will be utilized by Stitch to delve into the acquiring space, primarily to provide a comprehensive card product for its clients and control the entire product lifecycle (finance). This strategic move is a testament to Stitch's ambition to establish itself as a comprehensive payment solutions provider (finance).
In order to secure direct card acquiring capabilities in South Africa, Stitch has acquired Efficacy Payments, solidifying its status as a clearing system participant and extending its fintech footprint in the African market (finance).
