Stitch, the innovative platform reshaping the financial industry, made waves today by securing a significant $10 million in seed funding. The company’s success story includes backing from prominent investors such as Arbor Ventures, COTU Ventures, Raed Ventures, and SVC. Notable figures like Jason Gardner from Marqeta and Abdulmalik AlSheikh, known for his pivotal role in establishing mada and Sadad payment networks in Saudi Arabia, also joined the investment round.
This injection of funds marks an exciting chapter for Stitch as it propels forward to overhaul the financial infrastructure landscape within its region. The global demand for advanced technology solutions in both financial and non-financial sectors is rapidly increasing. Experts project that the Banking & Financial Services Industry (BFSI) will soar to USD 221.39 billion by 2033 from USD 91.42 billion in 2024, indicating a robust compound annual growth rate (CAGR) of 10.3%.
The surge in demand stems from the growing necessity for digital transformation across banking, insurance, and financial services worldwide. In Saudi Arabia alone, where banking assets have surpassed US $1 trillion (SAR 4.22 trillion), digital payments surged by an impressive 75% between 2019 and 2021. Moreover, point-of-sale transactions reached a staggering US$177.69 billion (SAR 667 billion) in FY 2024.
Despite this rapid evolution towards digitization, many businesses throughout the Middle East still encounter significant obstacles when developing modern financial products. Enter Stitch – a pioneering platform tackling these challenges head-on by offering a unified infrastructure solution originating from the Middle East but designed to compete on a global scale.
Initially launched to serve clients based in Saudi Arabia and UAE markets, Stitch has already garnered interest beyond its regional boundaries. In fact, it has started attracting clients in Eastern Africa with Kenya being one of its first adopters.
Mohamed Oueida, Founder & CEO of Stitch shared his vision stating:
“At Stitch, our vision is to reinvent how financial and non-financial institutions bring banking and payment products to market.”
He emphasized their commitment to streamlining the cumbersome process associated with building financial products by eliminating outdated systems and convoluted regulatory frameworks.
According to Oueida:
“Institutions should be able to focus on what matters… We are generally looking to make this process a lot more enjoyable for our partners.”
Stitch stands out as an unparalleled business model within the Middle East – offering cutting-edge technology that simplifies enterprise-level product development through an API-driven approach that circumvents legacy system drawbacks efficiently.
By leveraging Stitch’s innovative technology stack which facilitates up to an astounding 80% faster product development cycles; major players like Lulu Exchange,…are effectively launching bespoke financial solutions across various industries and geographical regions.
Nora Alsarhan from SVC expressed her enthusiasm about investing in Stitch saying:
“Our investment is driven by our commitment to fostering innovative startups based out of Saudi Arabia…We believe Stitch can significantly contribute towards fortifying a resilient financial ecosystem regionally…”
Khaled Lababidi of Arbor Ventures highlighted how emerging markets like Saudi Arabia are spearheading digital transformation within their respective finance sectors saying:
“As emerging markets digitalise their financial services…places like Saudi Arabia [will] lead this shift.”
Wael Nafee from Raed Ventures commended Stitch’s unique approach affirming:
“…Their focus on technical depth with global ambitions has set them apart…”
Founded recently in 2022,…from leading organisations worldwide underscores their dedication towards advancing long-term innovation within banking and payments sector.
Leave feedback about this