Stitch Secures $10 Million Funding To Transform Banking And Payments In The Middle East

Stitch, has recently announced a significant milestone with the completion of a $10 million seed funding round. This investment will propel the company's mission to revolutionize financial infrastructure within the Middle East.

The company, with its headquarters in Saudi Arabia, has garnered support from a noteworthy lineup of investors such as Arbor Ventures, COTU Ventures, Raed Ventures, and SVC.

Additionally, the funding round saw contributions from various family offices and seasoned industry professionals, including Marqeta's founder Jason Gardner and Abdulmalik AlSheikh, who played a pivotal role in establishing key payment networks like mada and Sadad in Saudi Arabia.

The financial sector, both globally and in the Middle East, is witnessing a rapid shift towards integrated, technology-driven infrastructures. This transition is evidenced by the projected growth of the global Banking & Financial Services Industry, which is expected to increase from $91.42 billion in 2024 to $221.39 billion by 2033, showcasing a Compound Annual Growth Rate (CAGR) of 10.3%.

Such growth is largely fueled by the demand for digital transformation across all sectors of banking, financial services, and insurance. Specifically, in Saudi Arabia, the banking sector's assets have soared to $1.12 trillion, with digital payments and point-of-sale transactions experiencing significant increases.

Stitch has positioned itself as a solution to the challenges faced by businesses in the Middle East looking to develop modern financial products. These businesses, ranging from banks to consumer brands, often encounter obstacles such as outdated systems and complicated regulatory frameworks.

Stitch's platform, built specifically for the Middle East yet designed for global competition, aims to simplify this process. The company, which initially targeted clients in Saudi Arabia and the UAE, has already expanded its reach to Eastern Africa, starting with Kenya.

Mohamed Oueida, the Founder & CEO of Stitch, outlined the company's vision, stating, "At Stitch, our vision is to reinvent how financial and non-financial institutions bring banking and payment products to market."

He highlighted the inefficiencies of the current system and expressed Stitch's commitment to making the development process more enjoyable and effective for its partners. Stitch's platform, which relies on API-driven solutions, promises to streamline the creation of financial products by up to 80% faster than traditional methods, offering a significant advantage in a rapidly evolving market.

Nora Alsarhan, Deputy CEO and Chief Investment Officer at SVC, emphasized the importance of supporting innovative Saudi-based startups like Stitch, recognizing their ability to enhance the financial ecosystem both regionally and globally.

Likewise, Khaled Lababidi, Partner at Arbor Ventures, and Wael Nafee, General Partner at Raed Ventures, praised Stitch for addressing infrastructure gaps and setting new standards for building financial products with a focus on local expertise combined with global ambitions.

The funds from the seed round will be directed towards expanding Stitch's team and further developing its platform capabilities, solidifying its position as a key infrastructure partner for a wide range of financial and non-financial institutions.

Stitch has already secured major clients like Lulu Exchange, Alamoudi Exchange, Foodics, and many others, demonstrating the platform's versatility and efficiency across various sectors.

Furthermore, Stitch's ability to attract top talent from renowned global organizations underscores its commitment to fostering long-term innovation in the banking and payments industry.