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Stitch, a South African fintech specializing in open banking and payment infrastructure, has raised $55 million in a new funding round from existing investors, bringing its total funding to $101 million across all rounds. Raba Partners, an Africa-focused venture capital firm, contributed $4.2 million to the round.

The funding follows Stitch’s recent expansion efforts, including the acquisition of payment provider Exipay earlier this year. Founded in 2019 by Kiaan Pillay, Natalie Cuthbert, and Priyen Pillay, Stitch has emerged as a key player in Africa’s digital payments sector. The company’s technology enables businesses to securely connect with users’ financial accounts, streamlining transactions for e-commerce and enterprise clients.

With the acquisition of Exipay — rebranded as Stitch In-Person Payments — the fintech has expanded into physical payment solutions, a strategic move to serve corporate clients requiring hybrid digital and cashless transaction systems. Though the deal’s value remains undisclosed, it allows Stitch to offer end-to-end payment services, targeting industries like retail and hospitality. Its clients include major African enterprises such as MTN, MultiChoice, and Standard Bank’s SnapScan. By integrating Exipay’s infrastructure, Stitch aims to reduce reliance on third-party processors, promising faster settlement times and improved reliability.

Raba Partners’ investment adds to Stitch’s recent fundraising successes. In October 2023, the company secured $25 million in a Series A extension led by Ribbit Capital, with participation from PayPal Ventures and CRE Ventures. Raba Partners, headquartered in Cape Town, has been an active supporter of African fintech startups. Last year, we reported that the firm closed its second fund at $59.6 million, targeting early-stage ventures in fintech, energy, and digital infrastructure. Its portfolio includes Egyptian payments platform Octo and Nigerian fintech Moment, alongside Stitch.

Source: Launchbaseafrica