Stitch Raises $25 Million to Expand Payments Infrastructure Offering

South African payments infrastructure Stitch has raised $25 million in a Series A extension.

The round, announced Tuesday (Oct. 3), was led by Ribbit Capital and brings Stitch’s total funding to $52 million, the company said in a news release provided to PYMNTS.

Joining the round were existing investors including PayPal Ventures, The Raba Partnership and CRE Venture Capital. The company raised another $21 million in its initial Series A in 2022.

According to the release, Stitch will use the funding to build out its payment solutions and expand its reach into new markets.

“We couldn’t be more excited to welcome Ribbit and to receive additional support from partners that have been a significant part of our journey thus far,” Stitch Co-founder and CEO Kiaan Pillay said in the release.

“We’ve seen substantial growth since we emerged from stealth just over two years ago, and we look forward to finding more ways to anticipate and address the needs of the large, global enterprises we serve as the payments landscape continues to evolve.”

The release notes that Stich serves primarily enterprise businesses with end-to-end payments solutions, including payments acceptance via pay by bank, debit and credit cards, manual bank transfer, recurring debits and cash.

The company says it also helps clients track, orchestrate and reconcile payments across multiple methods, providers and geographies in one dashboard via PayOS and “easily disburse funds via Payouts.”

And last year, Stitch introduced LinkPay, a solution that tokenizes financial accounts and allows for variable recurring payments.

On the company’s blog, Stitch noted it has also recently created “a simplified, no-code version of our product” designed for smaller businesses that lack access to developer teams, or even a website.

“Last month, we officially launched this solution as a spin-out brand: WigWag. We’re excited about the early uptake WigWag’s had, and what it means for small businesses and sellers who wouldn’t otherwise have access to simple digital payments,” the company said in its post.

In an interview with PYMNTS last February, Pillay said he witnessed many of the challenges FinTechs contend with firsthand when it came to dealing with outdated financial infrastructure across Africa.

That led to the creation of his company in February 2021 to give businesses an easier time when building and scaling FinTech products.

“Our goal was really to make it easy for FinTechs on the continent to start and to scale,” Pillay said. “[And] as we continue to do this, the harder problems like moving money begin to show. Moving money between ecosystems, individuals and geographies is really, really tricky.”