Stitch, a financial technology company based in Saudi Arabia, has raised US$10 million in a seed funding round.

Key investors include Arbor Ventures, COTU Ventures, Raed Ventures, Saudi Venture Capital (SVC), and industry figures Jason Gardner and Abdulmalik AlSheikh.

The funding will help Stitch expand its platform and team.

Founded in 2022, Stitch operates mainly in Saudi Arabia and the UAE, and is expanding into East Africa, starting with Kenya.

The company aims to streamline financial product development for institutions.

Its infrastructure allows businesses to launch banking and payment products up to 80% faster than traditional methods by providing an API-driven solution for banks, fintech firms, and enterprises.

🔗 Source: Stitch

🧠 Food for thought

1️⃣ Saudi Arabia’s fintech ecosystem is experiencing explosive growth fueled by demographic advantage

Stitch’s $10 million seed round reflects the broader fintech boom in Saudi Arabia, where the number of fintech companies has surged from just 20 in 2019 to 261 in 2024, a remarkable 1,200% increase in just five years 1.

This growth is powered by Saudi Arabia’s young, tech-savvy population, with 63% of residents under the age of 30 driving demand for digital financial services 2.

The country has built impressive digital foundations with 99% internet penetration and ranking fourth globally on the UN E-Government Index, creating fertile ground for fintech innovation 1.

These demographic and infrastructure advantages have contributed to digital payments accounting for 70% of retail transactions as of 2023, with the number of digital transactions increasing by 75% over three years to reach 10.8 billion 2.

Stitch’s focus on simplifying financial infrastructure directly addresses the needs of this rapidly digitizing market, where embedded finance revenue is projected to grow from $4.80 billion in 2024 to $13.10 billion by 2029 2.

2️⃣ Infrastructure innovation is addressing critical bottlenecks in financial product development

Stitch’s promise to reduce implementation time by 80% (enabling product launches in under 90 days) addresses a significant pain point in the region’s financial ecosystem, where legacy systems have historically slowed innovation [Original article].