Stitch, a South African API fintech startup, has secured an additional US$6 million in its seed round, up from the US$4 million it announced earlier this year. It has also confirmed its expansion into Nigeria.
The Stitch API enables developers to easily connect apps to financial accounts, allowing users to share transaction histories and balances, confirm their identities, and make payments.
Companies can use this tools to develop new and improved services in areas like personal finance, lending, insurance, payments, and wealth management. Fintechs can also use Stitch to collaborate with traditional financial institutions in a more secure and compliant way.
The startup announced a US$4 million seed round in February, which has now been extended by US$2 million with participation from investors that include leading global fintech entrepreneurs Tom Blomfield, co-founder of Monzo; Matt Robinson, co-founder of GoCardless; Emilie Choi, president of Coinbase; and Charlie Delingpole, founder of ComplyAdvantage.
Stitch will be able to accelerate development, launch their solution, and continue to grow their team on the ground in Nigeria as they prepare to expand across the continent with the help of this seed extension. Stitch will launch with a seamless, tokenized pay-by-bank product to assist Nigerian businesses and fintechs in improving their user experience, eliminating fraud, and lowering fees associated with alternative payment methods.
“Our goal is to become the go-to partner for any businesses building financial products in Africa. Access to the infrastructure Stitch is building can better enable these businesses to develop increasingly innovative solutions. They can now move money and access critical customer account data, while saving on costs, in hours rather than months,” said Stitch co-founder & chief executive officer (CEO) Kiaan Pillay.
“We’re super excited to be launching in Nigeria today, with support from some of the most incredible fintech founders and operators globally. Nigeria is one of the most active markets on the continent, if not the world, for fintech. The opportunity we see here is endless.”
Stitch, according to Blomfield, is helping to establish the infrastructure that will allow companies looking to scale digital finance solutions in Africa to grow exponentially.
“I see a lot of potential in African markets, where the wave of digital finance innovation is really beginning to gain momentum, and the Stitch team is getting in at precisely the right time. The team is one of the best I’ve seen globally, and I’m excited to see them continue to grow in Nigeria and beyond,” he said.