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, according to details seen by Launch Base Africa.

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.

Stitch’s growth reflects broader trends in Africa’s fintech sector, where companies are consolidating services to capture market share. Competitors like Flutterwave and Paystack have similarly expanded their offerings, intensifying competition in a market where digital payment adoption is accelerating but remains fragmented.

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.

The funding comes as African startups face tighter global venture capital conditions. Despite this, fintech remains the continent’s best-funded sector, accounting for nearly half of all startup investments in 2023. Stitch’s ability to secure capital underscores its potential to address payment inefficiencies and interoperability challenges.

However, Stitch operates in a crowded and regulatory-intensive environment. Open banking regulations vary across African markets, and rivals like Flutterwave have established pan-African footprints. Analysts suggest that Stitch’s success will hinge on execution — scaling its technology while navigating compliance hurdles in multiple jurisdictions.

For now, the company is focused on deepening its presence in South Africa and selectively expanding into other high-potential markets. “The goal is to build the rails that power Africa’s digital economy,” CEO Kiaan Pillay said in a recent statement.

As Raba and other investors double down on African fintech, Stitch’s latest funding round signals continued momentum — but also raises expectations for the startup to deliver on its promise of transforming payments across the continent.