South African API fintech startup Stitch has extended its seed round to US$6 million from the US$4 million announced earlier in the year, and at the same time confirmed its expansion into Nigeria.
The Stitch API allows developers to connect apps to financial accounts within minutes, allowing their users to share their transaction histories and balances, confirm their identities, and initiate payments.
This tooling allows companies to innovate with new and improved services including personal finance, lending, insurance, payments and wealth management. Stitch also enables fintechs to work with traditional financial institutions in a safer and more 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.
This seed extension will enable Stitch to fast-track development, launch their solution and continue to grow the team on the ground in Nigeria, as they prepare to expand further across the continent. Stitch will initially offer a seamless, tokenised pay-by-bank product to help businesses and fintechs in Nigeria improve their user experience, eliminate fraud and reduce fees associated with other 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.”
Blomfield said Stitch was playing a critical role in building the infrastructure that could enable exponential growth for companies looking to scale digital finance solutions in Africa.
“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.