Fintech firm Stitch in South Africa experiences a partial withdrawal by Rally Cap, its investor.
Rally Cap Partially Exits Investment in Fintech Startup Stitch, Signaling Growing Momentum in Africa's Startup Ecosystem
Rally Cap, a venture capital firm founded in 2020 by Hayden Simmons, has partially exited its investment in the South African fintech startup Stitch following the company's successful $55 million Series B funding round in April 2025. This move marks a significant early liquidity event for Rally Cap and signals growing momentum for investor exits in Africa's startup ecosystem.
Stitch, which has been expanding aggressively, acquired ExiPay and rebranded it as Stitch In-Person Payments, and finalized its acquisition of Efficacy Payments. These acquisitions have provided Stitch with direct card acquiring capabilities within South Africa, enhancing its payment solutions.
Key details of the investment reveal that Rally Cap typically invests between $200,000 and $500,000 at pre-seed and seed stages in startups across Africa, mainly in fintech. Rally Cap launched its first $30 million fund in 2022 and expanded its scope with a $5 million climate tech fund by 2024.
Although the exact size of Rally Cap's original investment and the return from the exit were not disclosed, this partial exit is seen as a milestone reflecting increasing liquidity for early-stage African VC investors in a market that has traditionally seen fewer exits.
The trend of partial exits enables VC firms to recycle capital, boosting their ability to fund new startups, and helps build confidence among investors in African startups. Growing liquidity events support more robust startup funding dynamics and may encourage founders to pursue bolder growth strategies, knowing investor capital can be unlocked earlier.
Rally Cap's broadened investment mandate from fintech to include climate tech reflects diversifying investment interests in Africa's evolving startup ecosystem. The Rally Cap's Stitch exit underscores the momentum in the region for more venture-backed wins, as other investments like Silverback Holdings' 5x return from its stake in OmniRetail and Oui Capital's early bet on Moniepoint that grew to $8 million also demonstrate.
Overall, Rally Cap's partial exit from Stitch is a positive signal of maturation in Africa’s venture capital market, particularly for early-stage investors, enhancing liquidity options and encouraging both investors and founders to engage more actively in the ecosystem. These shifts suggest a maturing ecosystem in Africa, where investors are finding tangible liquidity routes.
- The growing momentum in Africa's startup ecosystem is highlighted by Rally Cap's partial exit from its investment in the fintech startup Stitch, which received a $55 million Series B funding round.
- This partial exit by Rally Cap, a venture capital firm known for investing in African startups, particularly in fintech, is a sign that technology-driven ventures in Africa are attracting greater finance, boosting investor confidence and nurturing a thriving startup ecosystem.
