Rally Cap, an early-stage venture capital firm focused on emerging markets, has partially exited its investment in South African fintech Stitch, following the latter’s successful $55 million Series B funding round. While the exact size of Rally Cap’s initial investment and the financial return from the exit remain undisclosed, the move marks a significant milestone in Africa’s evolving venture capital and startup exit landscape.
Founded in 2020 by Hayden Simmons, Rally Cap began as an investment collective before formalizing its operations with the launch of a $30 million debut fund in 2022. In 2024, the firm broadened its scope with the introduction of a $5 million climate tech fund, reflecting both internal strategic shifts and increasing founder interest in sustainability-focused ventures.
“We just found that, increasingly, many of the most exciting calls we were having with founders were on the climate side,” Simmons said at the time. “That dovetailed alongside our internal initiative to kind of expand our mandate beyond fintech.” Rally Cap typically invests between $200,000 and $500,000 in pre-seed and seed-stage startups. Its African portfolio includes companies such as Termii, Circadian, Precium, and Cauridor, with Stitch being one of its most prominent bets.
Founded in South Africa, Stitch has rapidly emerged as a key player in Africa’s fintech infrastructure space. In April 2025, the company closed its Series B round, attracting high-profile investors including QED Investors, Norrsken22, Flourish Ventures, Glynn Capital, and notable angel investors like Trevor Noah.
Stitch has also been active on the acquisition front. Earlier in 2025, it acquired ExiPay, rebranding it as Stitch In‑Person Payments to expand into physical retail and enterprise payment solutions. More recently, it completed the acquisition of Efficacy Payments, securing direct card acquiring capabilities in South Africa—a strategic move that strengthens its end-to-end payment infrastructure.
Rally Cap’s partial exit from Stitch is part of a broader trend in Africa’s startup ecosystem, where exits are becoming more visible and viable. While funding rounds have surged in recent years, actual liquidity events have been relatively rare. That’s beginning to change.
Notable recent exits include:
- Oui Capital, whose $150,000 investment in Moniepoint grew to $8 million, returning its entire fund.
- Silverback Holdings, which reported a 5x return on its investment in OmniRetail.
These examples suggest that early-stage investors are beginning to see real pathways to liquidity, a critical factor for the long-term sustainability of venture capital in Africa.
Rally Cap’s exit from Stitch reinforces the growing maturity of Africa’s tech ecosystem. It demonstrates that early-stage investments can yield meaningful returns, especially when paired with strong operational execution and strategic growth.
As more startups reach later funding stages or pursue acquisitions, the continent is likely to see a rise in similar exit stories—encouraging more capital inflows and validating the potential of African innovation on the global stage.
