South African fintech Stitch raises $25 million to become the market leader in the payments segment

Stitch says it's in talks with global consumer internet companies about a possible partnership.

South African fintech Stitch has raised $25 million in an extension funding round led by Ribbit Capital. The funds will be used to help the company become a market leader in the payments segment, according to co-founder and CEO Kiaan Pillay. Stitch aims to enable businesses to build, optimize, and scale financial products through API gateways that improve the conversion rate of online payments and optimize payment operations. The company initially focused on acting as a quasi-payments bank for businesses, enabling firms to access customers' financial accounts and provide integrated services such as personal finance, lending, and insurance.

 However, Stitch has evolved into a payment service provider, offering businesses services such as accepting payments via bank, debit, and credit card, and disbursements via payouts. The company serves primarily South African firms, including MTN, Multichoice, the Foschini Group, and Standard Bank’s SnapScan and Yoco, but does have a handful of small businesses and startups in Nigeria. Stitch says it's in talks with global consumer internet companies about a possible partnership.