Financial organization Rally Cap successfully executes a partial withdrawal from its South African tech-finance venture, Stitch.
Rally Cap, a venture capital firm focused on early-stage startups, has partially exited its investment in South African fintech company Stitch following Stitch's successful $55 million Series B funding round in April 2025. This move is a significant milestone in Africa's startup exit ecosystem, indicating growing momentum for investor liquidity events in the region.
Stitch, which offers payment solutions for businesses, has shown remarkable growth and expansion in recent months. Beyond securing the substantial funding round, led by QED Investors, Norrsken22, Flourish Ventures, Glynn Capital, and prominent angel investor Trevor Noah, the company has made strategic acquisitions to broaden its payment offerings.
In early 2025, Stitch acquired ExiPay, rebranding it as "Stitch In-Person Payments," to provide physical card and alternative payment options for enterprises and retail businesses. More recently, Stitch acquired Efficacy Payments, gaining direct card acquiring capabilities within South Africa.
Founded in 2020 by Hayden Simmons, Rally Cap typically invests between $200,000 and $500,000 in early-stage startups at pre-seed and seed levels. While initially focused predominantly on fintech, Rally Cap has diversified its mandate since 2024, launching a $5 million climate tech fund due to rising founder interest in that space.
The partial exit from Stitch reflects a broader trend in African venture capital where early-stage investors are finding innovative liquidity routes such as partial cash-outs during later funding rounds. This trend, exemplified by Rally Cap’s move, is encouraging more recycling of capital and bolder founder ambitions amid a still-developing IPO and M&A market on the continent.
Other investments by Rally Cap have also shown meaningful returns. For instance, Oui Capital's early bet on Moniepoint grew to $8 million, while Silverback Holdings achieved a 5x return from its stake in OmniRetail. These successes underscore the potential for significant returns in Africa's startup ecosystem.
Despite increased funding rounds in Africa's startup ecosystem, notable exits are still relatively uncommon. However, the partial exit from Stitch by Rally Cap suggests that this may be changing, with more venture-backed wins potentially on the horizon across the region.
The partial exit of Stitch by Rally Cap, a venture capital firm investing in technology-driven startups, is a significant development in Africa's startup ecosystem, signifying a growing trend of innovative liquidity events in the region. With Stitch's expansion into finance, specifically payment solutions for businesses, the success of this fintech company is indicative of the potential for substantial returns within the continent's startup ecosystem.
