In the world of fintech, over time, open finances are still the significant themes as various businesses use APIs to access the financial accounts of their customers and provide them a wide range of combined financial services according to the requirement. One of the noteworthy partners in the industry of managing the APIs in Africa, Stitch has raised a funding of $21 million in series A funding. This raise follows the $4 million the company acquired in February last year, combined with the $2 million extensions company secured four months ago, which $6 million to its seed round. Stitch, to date has raised a total of $27 million.
This round of funding was led by the long-term investment firm The Spruce House Partnership, which is a company based out of New York. New and existing partners also participated in the round like TrueLayer, PayPal Ventures, Village Global, firstminute capital, and many others.
Stitch, the South African API fintech company allows the building, optimization, and scaling of financial products of businesses.
Stitch, the South African API fintech company allows the building, optimization, and scaling of financial products of businesses. According to the release, the new funding will be used for a â€˜financial graphâ€™ ecosystem that the company plans to create across Africa. The financial graph has been described by the company as an infrastructure for the financial steps that enable the businesses to save time as they have to write code once, which will allow them to launch in multiple markets and scale with better speed based on the interoperability across different areas, regions, banks, providers, and several other types of financial accounts in the industry.
The company visions the graph in three fundamental stages. First, what is launched from secrecy, is a completely infrastructural system of connecting finance and bank accounts with an API. The second stage seeks to get possession of merchants and businesses, in order to build operational cases and applications on that infrastructure. The final and last stage is enabling the end consumers to link their accounts through these businesses. According to the CEO of Stitch, Kiaan Pillay, there are several gaps within the connections between geographies and several institutions, and Stitch tries to bridge those gaps in order to make the connections universal.
Stitch is a platform that provides solutions for e-commerce marketplaces, businesses, platforms, and its leading clients, fintech.
Stitch is a platform that provides solutions for e-commerce marketplaces, businesses, platforms, and its leading clients, fintech. The business customers deal with Stitch for use cases like personal and business management of finances, KYC & onboarding, wallet top-ups, e-commerce checkouts, and other services. The data and the identity present on the platform allow businesses to access transaction histories, balance data, verification of account information and perform to check fraud activity. The payments product helps to ease down the process of single-click payments and bank-to-bank transfers. The CEO also believes that the shift from cash to digital transactions causes division for the very first time. Therefore, the company is planning to surround the all-in-one network in order to introduce to open up a space and knock down the warehouses. This will result in enabling people to move money through various applications between different geographies.
Some of the Stitch customers include Chipper, Cash & Luno, which are wallet-based companies, immerse finance providers such as ImaliPay, FlexClub, which is a subscription platform, and several other payment aggregators like Yoco.