South African payments infrastructure company Stitch has secured a $55 million Series B funding round, led by QED Investors, allowing the team to broaden its in-person payment offering.
According to the company, the investment will enable it to expand into the acquiring space and strengthen its online payments suite to better support enterprise merchants across payment needs.
This round takes the overall capital to $107 million over four years.
The new investment brings on board additional global investors, including Flourish Ventures, Norrsken22 and Glynn Capital, joining existing backers, which includes Ribbit Capital and PayPal Ventures.
South African-born comedian Trevor Noah is also among the backers.
Stitch’s clients include Takealot, Mr D, MTN, Vodacom, Standard Bank’s Shyft, TFG’s Bash, Hollywoodbets, Luno and The Courier Guy.
“We're super-excited and proud to be where we are in the market today. We feel we've earned the right to work with clients across the board – not just for online or in-person payments, but with any money movement needs,” says the Stitch team. “It felt like the right time to more aggressively expand our offering so we can further serve our clients.
“We've been fortunate to know all the new investors in the round for many years, and they all come with an impressive amount of fintech experience, including support in scaling similar businesses in other markets.”
Stitch says it has seen growth since “emerging from stealth” in February 2021, because of the team’s understanding of the payment needs and requirements of enterprise merchants.
Gbenga Ajayi, QED Investors partner and head of Africa and the Middle East, comments: “Having closely followed the Stitch team over the past four years, it's been impressive to watch their rapid growth and execution in becoming a trusted payment provider.
“Their ongoing expansion from a PSP [payment service provider] to a comprehensive payments partner, including robust in-person payments and acquiring solutions, demonstrates their ability to anticipate market needs and execute at scale.
“At QED Investors, we’re thrilled to partner with such visionary founders, confident that Stitch will continue to set new standards in the payments industry across Africa and beyond.”
The Stitch team is currently focused on expanding its in-person payments solution, launched with the acquisition of ExiPay in January, and will soon add acquiring to its services list, says the company.
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