Saudi Arabia-based FinTech Stitch has successfully closed a $25 million Series A funding round, spearheaded by prominent venture capital firm Andreessen Horowitz. The capital infusion is earmarked to significantly advance the company’s operating system designed for modern financial institutions, aiming to replace outdated and fragmented bank core systems with advanced, AI-ready infrastructure.
Strategic Investment Fuels Expansion and Product Development
The $25 million Series A funding will be strategically deployed across several key areas. According to a press release issued on Thursday (May 14), Stitch plans to accelerate its product development initiatives, deepen its market penetration across the Gulf Cooperation Council (GCC) and the broader Middle East and North Africa (MENA) region, and expand its global go-to-market operations. This latest funding follows a $10 million seed round announced in May 2025, building on the company’s momentum since its founding in 2022.
Modernizing Core Banking for the AI Era
Stitch’s platform addresses a critical challenge faced by financial institutions globally: the reliance on legacy core systems that hinder innovation and the adoption of new technologies like artificial intelligence. The company offers a modern system of record, described as a single, cloud-native stack that encompasses essential banking functions including lending, cards, payments, and ledgers. A key aspect of its design is modularity, allowing financial institutions to adopt components incrementally rather than undertaking a complete, disruptive overhaul of their existing infrastructure.
Mohamed Oueida, Founder and CEO of Stitch, articulated the problem and solution clearly. “Financial institutions want to adopt AI but can’t do so on top of fragmented, legacy infrastructure,” Oueida stated in the release. “We built Stitch to fix that.” The platform’s ability to process substantial volumes of transactions underscores its current operational scale, with more than $5 billion transacted on its platform in the last six months alone across its operational footprint in the GCC, Africa, and Southeast Asia.
Andreessen Horowitz Sees “Greenfield Opportunity”
The decision by Andreessen Horowitz to lead Stitch’s Series A round highlights the significant market opportunity perceived in modernizing financial infrastructure, particularly in rapidly developing regions. Alex Rampell, General Partner at Andreessen Horowitz, emphasized the foundational nature of Stitch’s offering, stating, “What Stitch is building, a modern, unified system of record, is what makes everything else possible.”
Rampell, alongside James da Costa, Partner at Andreessen Horowitz, further elaborated on their investment thesis in a blog post dated Wednesday (May 13). They noted the Middle East’s expanding financial services ecosystems as countries diversify beyond oil. Specifically, Saudi Arabia’s ambitious plans to establish hundreds of new financial institutions over the next five years present a “greenfield opportunity” for providers of core banking software like Stitch. This investment marks Andreessen Horowitz’s inaugural venture into Saudi Arabia, with Rampell and da Costa expressing their enthusiasm: “We are thrilled to lead Stitch’s Series A — and honored to make this our first investment in Saudi Arabia.” They concluded, “After years building conviction around the global FinTech infrastructure opportunity, we believe Stitch represents the clearest expression we’ve found of what the next generation of this infrastructure looks like.”
Stitch’s successful funding round and strategic backing from a leading global investor position it as a key player in the ongoing transformation of financial services, particularly as institutions worldwide seek to leverage AI and cloud-native solutions to enhance efficiency and competitiveness.
