South Africa's Stitch Raises $55M to Expand Digital Payments Services
TLDR
- Stitch has raised $55 million in a Series B round to expand its in-person payment offerings, strengthen its online suite, and enter the card acquiring space
- The round was led by QED Investors, with participation from Norrsken22, Flourish Ventures, Glynn Capital, and angel investor Trevor Noah
- The funding will support Stitch’s integration of ExiPay, acquired earlier this year, and enable the firm to act as a direct card acquirer, cutting banks out of the chain and reducing processing costs
South African fintech Stitch has raised $55 million in a Series B round to expand its in-person payment offerings, strengthen its online suite, and enter the card acquiring space. The round brings total funding to $107 million since the company’s 2021 launch.
The round was led by QED Investors, with participation from Norrsken22, Flourish Ventures, Glynn Capital, and angel investor Trevor Noah. Existing investors PayPal Ventures, Ribbit Capital, and The Raba Partnership also joined.
The funding will support Stitch’s integration of ExiPay, acquired earlier this year, and enable the firm to act as a direct card acquirer, cutting banks out of the chain and reducing processing costs. Stitch aims to offer seamless switching between payment rails, robust fraud prevention through its Shield AI tool, and unified online and offline payment experiences. Clients include Takealot, MTN, Vodacom, and TFG. The startup has also launched Stitch Express for Shopify and WooCommerce merchants.
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Key Takeaways
Stitch’s $55 million raise underscores a growing trend: fintechs seeking more control over payment infrastructure to improve margins and user experience. By becoming a direct card acquirer, Stitch aims to streamline transaction flows, reduce reliance on banks, and respond to enterprise demands for unified, always-on payment systems. This positions the startup to serve high-volume clients like Takealot and Hollywoodbets with minimal downtime in a market where financial infrastructure isn’t built for 24/7 uptime. South Africa’s e-commerce growth—expected to reach 60% penetration by 2028—is a tailwind. But so is rising demand for comprehensive solutions beyond simple processing, including fraud protection, detailed analytics, and reconciliation tools. Stitch’s strategy also aligns with investor focus on startups with clear fundamentals and enterprise traction amid tighter funding conditions. The launch of Stitch Express for small online sellers further signals intent to own multiple layers of the payments stack—from rails to checkout interfaces—as it competes with global players entering Africa’s digital commerce space.
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