Stitch, a South Africa-based payments infrastructure startup founded in 2021, has successfully raised $55 million in a Series B funding round, bringing its total funding to $107 million in just four years. The funding will accelerate the company’s expansion into in-person payments, enhance its online payment suite, and support its entry into card acquiring.
Led by QED Investors, the funding round also saw participation from Norrsken22, Flourish Ventures, and Glynn Capital, with notable angel investors, including comedian Trevor Noah. Existing investors such as Ribbit Capital, PayPal Ventures, Firstminute Capital, and The Raba Partnership also contributed to the round.
In a statement, a Stitch representative emphasized that the funds will enable the company to scale its in-person payment offerings, following its acquisition of ExiPay earlier this year. Additionally, the company plans to bolster its online payments suite to serve enterprise merchants’ broad payment needs.
“We are focused on expanding our in-person payments and improving our online payment solutions,” the representative said. “Becoming a direct acquirer allows us to process card transactions without relying on banks, giving us full control over the entire product lifecycle. This will reduce intermediaries and cut costs for our clients.”
The startup is also investing in robust payment processing infrastructure to improve reliability and service levels. This includes maintaining seamless switching between different payment sources to ensure uninterrupted service, even during technical failures.
Stitch’s growth can be attributed to increasing e-commerce penetration in South Africa and the growing adoption of digital wallets and buy-now-pay-later (BNPL) solutions. E-commerce penetration in South Africa is projected to rise from 49% in 2023 to 60% by 2028, fueling demand for the company’s solutions.
“Investors are primarily focused on building businesses with sound financial performance,” the representative explained. “You must demonstrate market growth, strong client adoption, and clear financial fundamentals. Only then do factors like investor networks and brand storytelling become relevant.”
Stitch already serves top enterprise clients in South Africa, including Takealot, Mr. D, MTN, Vodacom, Standard Bank’s Shyft, TFG’s Bash, Hollywoodbets, Luno, and The Courier Guy, among others. The new funding will help the company further strengthen its services for these high-profile clients.
“One of the challenges we face is ensuring consistent service for businesses like Takealot, which operate 24/7. South Africa’s financial infrastructure hasn’t traditionally been designed for round-the-clock operation,” said the representative.
Stitch addresses this gap by offering a comprehensive suite of payment solutions that combine online and in-person payments. In early 2025, the company also launched Express, a simplified checkout solution for e-commerce platforms like Shopify and WooCommerce.
Known for its strong fraud prevention capabilities, Stitch has integrated its Shield product, which uses AI to detect and manage fraud incidents across all transactions, providing merchants with tools to mitigate risks effectively.
With South Africa’s payments market evolving rapidly, Stitch’s ability to offer value-added services, including AI-driven fraud prevention and detailed payment insights, positions the startup as a leading innovator in the space. As businesses demand faster product delivery, higher service levels, and seamless omnichannel experiences, Stitch is ready to meet these growing needs.
“Enterprises are no longer just looking for basic payment processing. They want comprehensive solutions, including fraud prevention, streamlined reconciliation, and reporting,” the representative added.