"Stitch fintech company in South Africa experiences a segmented departure as Rally Cap concludes a significant phase of exit"
Rally Cap, an early-stage venture capital firm based in Africa, has announced a partial exit from its investment in South African fintech startup Stitch. This move comes following Stitch's successful $55 million Series B funding round in April 2025 [1][2][3][4].
Background
Founded in 2020 by Hayden Simmons, Rally Cap focuses on pre-seed and seed-stage investments, typically investing between $200,000 and $500,000 per startup. Initially fintech-focused, the firm expanded into climate tech with a $5 million fund launched in 2024, reflecting broader founder interest outside fintech [1][2][3].
Stitch's Growth and Acquisitions
Stitch has been rapidly scaling, attracting top-tier investors such as QED Investors, Norrsken22, Flourish Ventures, Glynn Capital, and angel investor Trevor Noah. Earlier in 2025, Stitch expanded its offerings by acquiring ExiPay (now Stitch In-Person Payments) and Efficacy Payments, gaining direct card acquiring capabilities in South Africa [1][2][3].
Significance for Africa’s Startup Exit Scene
Rally Cap's partial exit is an important step in the growth of Africa's startup ecosystem. It joins a slowly growing list of impactful early-stage VC exits, signaling a maturing ecosystem where early investors can realize returns. This exit illustrates a quiet but powerful trend of early-stage VCs finding liquidity through partial exits tied to later-stage funding rounds, rather than waiting for traditional IPOs or acquisitions—which remain sluggish in many African markets [1][4].
Similar success stories include Oui Capital’s 53x return from Moniepoint and Silverback Holdings’ 5x return from OmniRetail, showcasing increasing investor confidence and demonstrating the financial viability of African tech startups [1][4].
Broader Implications
Partial exits via funding rounds mark a creative liquidity approach that may accelerate the African VC landscape by allowing firms to recycle funds and support new startups sooner, fostering a more dynamic startup ecosystem [4].
In summary, Rally Cap's partial exit from Stitch is significant because it is an early example of African early-stage investors successfully achieving returns, which reflects growing investor confidence, emerging liquidity mechanisms in local markets, and the increasing maturity of Africa’s startup ecosystem [1][2][3][4].
Further Developments
Notable exits are still relatively uncommon in Africa's startup ecosystem despite an increase in funding rounds. However, these shifts indicate a maturing ecosystem in Africa where investors are finding tangible liquidity routes, a key indicator of early-stage investing's sustainability. The maturing ecosystem in Africa suggests more venture-backed wins across the region.
Rally Cap, initially founded in 2020, launched its first $30 million fund in 2022. With this successful exit, the firm is poised to continue supporting and investing in innovative African startups.
[1] TechCabal, "Rally Cap partially exits Stitch, marking a significant milestone for African VCs", [URL]
[2] Disrupt Africa, "Stitch raises $55m Series B funding to expand its offerings", [URL]
[3] Ventures Africa, "Stitch acquires ExiPay and Efficacy Payments", [URL]
[4] TechCrunch, "Why Rally Cap’s Stitch exit is a big deal for Africa’s startup ecosystem", [URL]
- As Rally Cap, a venture capital firm, exits part of its investment in Stitch, Africa's startup ecosystem showcases a maturing technology sector, with early signs of sustained liquidity and investor confidence.
- The strategic partial exit of Rally Cap from Stitch, a fintech startup, underscores an emerging trend in African technology, where early-stage VCs find liquidity through later-stage funding rounds, contributing to a dynamic startup ecosystem.
