Rally Cap has Partially Exited South African Fintech Stitch

Early-stage venture capital firm Rally Cap has partially exited South African fintech Stitch following the company’s recent $55 million Series B funding round. While Rally Cap has not disclosed the exact size of its original investment or details about the returns it earned, this move marks an important milestone in the African startup ecosystem, signaling growing momentum for investor exits in the region.

Rally Cap was founded by Hayden Simmons in 2020 and originally started as an investment collective. By 2022, it had raised its first formal fund of $30 million. In 2024, Rally Cap broadened its investment focus by launching a $5 million climate tech fund, responding both to increasing interest from startups and an internal desire to expand beyond only fintech companies. Simmons noted that the increased excitement around climate tech startups influenced this move alongside a strategy to diversify the firm’s investments.

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Typically, Rally Cap invests between $200,000 and $500,000 in pre-seed and seed-stage startups. Its portfolio includes notable African companies such as Termii, Circadian, Precium, and Cauridor. However, one of its most prominent investments has been in Stitch, a South African fintech startup founded to innovate payments and financial services.

In April 2025, Stitch raised a $55 million Series B round led by esteemed investors including QED Investors, Norrsken22, Flourish Ventures, Glynn Capital, and angel investors such as Trevor Noah. This funding round underscored Stitch’s rapid growth and continued market expansion. Earlier in 2025, Stitch made significant acquisitions, including ExiPay, which it rebranded as “Stitch In-Person Payments” to facilitate in-person card and alternative payments for businesses and retailers. Shortly after, Stitch also acquired Efficacy Payments, gaining direct card acquiring capabilities in South Africa. These acquisitions allow Stitch to become one of the few fintechs in the country with the infrastructure to fully process card payments without relying on banks or third parties, enhancing service speed and cost efficiency for merchants.

The news that Rally Cap partially exits South African fintech Stitch highlights an important trend in Africa’s startup ecosystem. While the continent has seen significant growth in funding rounds over recent years, high-profile exits, where investors sell all or parts of their stakes for profits, have been less frequent. This exit points to a maturing market where venture capitalists are beginning to experience meaningful returns on their early-stage investments.

This shift is also noted in other successes on the continent. For example, Oui Capital’s initial $150,000 investment in Moniepoint grew to $8 million, allowing the firm to return its entire fund, and Silverback Holdings recorded a fivefold return on investment in OmniRetail. These success stories illustrate increasing liquidity opportunities for investors and signal a more sustainable long-term future for venture investments in Africa.

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Rally Cap partially exiting South African fintech Stitch adds to this positive momentum and reinforces confidence in the potential for venture-backed startups across Africa to achieve profitable exits. It also may encourage more venture capital firms to participate actively in Africa’s early-stage startup scene, attracted by clearer paths to returns.

Rally Cap’s partially exiting from Stitch is a significant development that reflects the evolving African venture landscape. Stitch’s impressive growth and strategic acquisitions have contributed to this milestone, while Rally Cap’s expanding investment focus promises to support a broader range of innovative startups beyond fintech going forward. This development not only benefits Rally Cap and Stitch but also strengthens the case for Africa as an emerging hub for venture-backed success stories.

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