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SA API fintech company calls on early-stage fintech startups to pitch to global investors in Cape Town

Business Insider SA

Startup showcase (Stitch)
Startup showcase (Stitch)
  • South African Fintech startup Stitch calls on early-stage fintech companies to apply for a startup showcase that will allow them to pitch to investors.
  • Participating startups will pitch for local and global investors in Cape Town on February 25.
  • Recently the company announced a $6 million (R91.9 million) seed round and want to make resources available to help grow other fintech startups.
  • Applications close on February 11 at 11:59.
  • For more stories go to www.BusinessInsider.co.za.

Stitch, a local API fintech startup, in partnership with digital payment platform Paystack and Disrupt Africa, is giving back to early-stage fintech companies with a startup showcase that'll give them a  chance to pitch to investors.  

The showcase, which takes place on February 25 in Cape Town, aims to give startups across Africa much-needed pitching support in the form of access to capital, advice, and product support in order for the companies to grow.   

During the time of pitching, each startups will be able to access support from the Stitch team.

All startups that apply will get two months of access to Stitch API at no cost, while selected startups in Nigeria and South Africa will get free access for six months.

Paystack will also be offering a one-hour workshop with the team focused on raising funds and growth. According to Disrupt Africa, startups from South Africa, Nigeria, and Ghana will receive payment processing from Paystack for free.

Companies based in South Africa, Nigeria, Egypt, Ghana, Uganda, Zambia, or Rwanda, which have a fintech or embedded finance solution, can apply here

Applications close on February 10 at 11:58.

Giving back

Last year, Stitch announced a $4 million seed round, which extended to $6 million, and it wants to do its part in helping other fintech startups to get off the ground and grow and raise funds to accelerate their businesses.

"We've been very fortunate to have received backing from some of the best fintech investors, founders and builders in the world, who support us and our mission and believe in the potential for fintech on the continent," said CEO and cofounder of Stich Kiaan Pillay.

According to the CEO, there is a group of founders and operators that have built fintech and infrastructure products globally, who have shown interest in the continent. He considers the startup fortunate to have had some of them as "angel investors".

"They see a lot of the opportunity at a grassroots level in the same way they did in their own markets 10+ years ago. We're fortunate to be able to leverage some of these people, who have also opened up their networks and expertise to help us.

"Today, even though we're sitting in South Africa, we have access to a really amazing network in Silicon Valley, Europe, and across the continent," said Pillay who is keen on playing an active role in helping grow other early-stage fintech startups.

Stitch – making payments easier

Stitch API is a South African fintech startup that makes it easier for businesses to connect to their users' financial accounts so they can access account information (to verify a person's identity), transaction history, and balance data (to understand their spending behaviour and determine things like whether they can afford a product or service).

It also helps them initiate payments directly from a bank account, without the high cost and risk of fraud that's common with card payments.

The company launched last year February and recently went live in Nigeria. It has so far seen 50% month-on-month customer growth, "a 3.3x MoM increase" in linked financial accounts on the platform, and 15% month-on-month growth in payments processed.

"There is a massive need for infrastructure like Stitch in African markets. Without Stitch, today a fintech business would have to integrate with all the major banks and financial institutions their customers might use, in each market they want to launch in, separately, in order to get their solution off the ground.

"Not to mention dealing with regulation in each market, which differs dramatically. This is extremely challenging and time-consuming. It also creates a barrier that makes it difficult for less experienced developers to launch these types of solutions," said Pillay.

The company's short-term goal is to launch instant payouts and refunds, and guaranteed instant pay-ins.

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