South African Fintech Stitch Experiences a Partial Sale to Rally Cap
In a significant move for Africa's burgeoning startup scene, Rally Cap, an early-stage venture capital firm, 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 partial exit marks a milestone in Africa's evolving startup exit landscape, indicating growing momentum for investor liquidity options beyond traditional IPOs or acquisitions.
Founded in 2020 by Hayden Simmons, Rally Cap began as an investment collective focusing mainly on fintech startups, investing typically between $200,000 and $500,000 at pre-seed and seed stages. In 2024, Rally Cap expanded its mandate by launching a $5 million climate tech fund, responding to increased founder interest beyond fintech.
Stitch, a South African fintech, has shown robust growth since its inception. In 2025, the company raised $55 million in Series B funding led by QED Investors, Norrsken22, Flourish Ventures, Glynn Capital, and prominent angel investor Trevor Noah. Following this round, Stitch made strategic acquisitions, first acquiring ExiPay and rebranding it as "Stitch In-Person Payments" to offer in-person card and alternative payment solutions. Later, Stitch finalized its acquisition of Efficacy Payments, securing direct card acquiring capabilities within South Africa. These acquisitions have strengthened Stitch's enterprise and retail payment solutions, contributing to its market position.
The partial exit from Rally Cap illustrates a growing trend among African VCs to monetize early-stage investments through later funding rounds rather than waiting solely for IPOs or buyouts. Other African VC success stories include Oui Capital's 53x return on Moniepoint and Silverback Holdings' 5x return on OmniRetail, showcasing increasing liquidity options in the region's startup ecosystem.
In summary, Rally Cap’s partial exit from Stitch after a major funding round underscores both the fintech’s rapid expansion and the maturation of Africa’s startup investment and exit environment, highlighting a move toward more frequent and creative liquidity events for early investors. The successes of Moniepoint, OmniRetail, and Stitch indicate a promising future for venture-backed wins across the region.
The startup ecosystem in Africa continues to attract investment, with Rally Cap, a venture capital firm focusing on technology-based startups like Stitch, strategically exiting some of its holdings. This move was prompted by Stitch's successful Series B funding round, showcasing growing potential for finance in the African fintech sector. With more liquidity options becoming available, early investors like Rally Cap stand to benefit from more frequent and creative exit events.
