South African Stitch announced it has obtained additional financing worth $21 million to support its expansion strategy. The startup, which develops digital financial solutions primarily for fintech companies, says it will invest the money in developing new services, growing its human resources, and strengthening its footprint in South Africa and Nigeria, where it operates. Stitch also plans to enter new markets including Ghana, Kenya, and Egypt with its low-cost, less fraud-prone solutions.

 "We are super excited for the challenge ahead and grateful to be supported by some of the leading fintech investors, founders, and builders in the world,” the beneficiary startup said on LinkedIn. The resources are provided by a consortium of mostly foreign investors, some of whom had invested in Stitch in the past. These include The Spruce House Investment, PayPal Ventures, CRE Venture Capital, and Village Global, all of which are based in the United States.

As a reminder, in February 2021, the company secured $4 million to improve its offers and expand its team. Stitch launched in Nigeria in October 2021 to tap into the opportunities in the country. According to Kiaan Pillay (pictured), CEO of Stitch, Nigeria is not only one of the most populous countries in the world, but also one of the densest and most dynamic fintech ecosystems. “It is fast becoming a hub for engineering and product talent and a go-to-market for fintechs," he said when his company started operations in Nigeria.

In an article published in October 2021, Stitch noted that underinvestment in developer training and infrastructure has hampered the rapid growth of a fintech ecosystem in Africa. Yet, the continent has advantages (rising smartphone ownership and digital literacy) that could unlock the potential of this market.

Chamberline Moko