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Stitch gets $2 million in funding, expands to Nigeria

Stitch gets a $2M seed extension, hires Benjamin Dada to lead Nigerian expansion

South African based API fintech Stitch has officially expanded into Nigeria, appointing Benjamin Dada as its manager. He will spearhead Stitch’s operations in Nigeria. The news coincides with Stitch seed extension of $2 million, which takes the total seed investment for the firm $6 million.

Investors in the round include existing backers Raba, Firstminute Capital, CRE, Village Global, 500 Fintech, Future Africa, and Norrsken. New investors, mainly executives at global fintechs, participated as well. They include Tom Blomfield, co-founder of Monzo and GoCardless; Matt Robinson, co-founder of GoCardless; Emilie Choi, president and COO of Coinbase; and Charlie Delingpole, founder of ComplyAdvantage.

Tom Blomfield, a co-founder of Monzo, believes the African markets have a lot of potential, and he believes that Stitch has the right ingredients to blossom in Nigeria and beyond.

According to Blomfield, “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.”

In a market where Mono and Okra are already making waves, Stitch plans to get traction by giving customers free access to the end of the year and what Dada describes as “inclusive and sustainable” pricing.

“They will not only be achieving cost savings by accepting account payments, but they can now earn a little more for each payment they accept via Stitch." - Benjamin Dada

Now fully live in South Africa and Nigeria, Stitch says it is on track to facilitate $10 million in monthly payments by the end of the year. Some of its clients include Chipper Cash, Paystack, Franc, Sanlam, Yoco and Flexclub.

Nigeria in focus

GDP: $432.294 billion in 2020 compared to $448.12 billion in 2019

Population: 206,139,587 in 2020 compared to 200,963,03 in 2019

GDP per capita: $2,097 in 2020 compared to $2,229 in 2019