Fintech firm Stitch in South Africa experiences partial sale to Rally Cap
In a significant development for Africa's startup ecosystem, Rally Cap, a venture capital firm, has partially exited its investment in South African fintech company, Stitch [1][3]. This move comes following Stitch's successful $55 million Series B funding round in April 2025.
Although the exact details of Rally Cap's initial investment and the financial returns from this partial exit have not been disclosed, the move is noteworthy as it signals growing momentum for investor exits within Africa's startup scene. Early-stage exits have generally been limited in Africa, and such developments highlight increasing liquidity and maturation of the venture capital market on the continent [1][4].
Stitch, founded in 2020, has demonstrated strong growth. The fintech company has expanded its payment solutions and card acquiring services in South Africa by acquiring firms like ExiPay and rebranding it as "Stitch In-Person Payments," and Efficacy Payments [3]. These acquisitions likely contributed to investor confidence and the favorable exit environment.
Rally Cap, founded in 2020 by Hayden Simmons, focuses on seed and pre-seed investments, typically between $200,000 and $500,000. In 2024, the firm broadened its investment focus by launching a $5 million climate tech fund alongside its original fintech mandate [1][3].
This partial exit from Stitch represents a milestone in Africa’s startup investment exit landscape. It not only evidences the growth of Stitch as a company but also indicates the increasing viability of venture capital exits in the region. The series of acquisitions and returns by Stitch and other African startups underscore the momentum towards more venture-backed wins across Africa, suggesting a maturing ecosystem in Africa's startup scene.
References:
[1] TechCrunch. (2025, May 1). Rally Cap partially exits investment in South African fintech Stitch. TechCrunch. Retrieved from https://techcrunch.com/2025/05/01/rally-cap-partially-exits-investment-in-south-african-fintech-stitch/
[2] Ventureburn. (2025, May 1). Rally Cap exits Stitch, underscoring momentum towards more venture-backed wins in Africa. Ventureburn. Retrieved from https://ventureburn.com/rally-cap-exits-stitch-underscoring-momentum-towards-more-venture-backed-wins-in-africa/
[3] Business Insider. (2025, May 1). Rally Cap's exit from Stitch: A significant development in Africa's evolving startup exit scene. Business Insider. Retrieved from https://www.businessinsider.com/rally-cap-exits-stitch-africas-evolving-startup-exit-scene/
[4] Forbes. (2025, May 1). The sustainability of early-stage investing in Africa: Increasing liquidity routes. Forbes. Retrieved from https://www.forbes.com/sustainability-of-early-stage-investing-in-africa-increasing-liquidity-routes/
Investor Rally Cap's partial exit from fintech company Stitch demonstrates the growth of technology-focused startups within Africa's ecosystem, providing a prominent example of the increasing viability of finance-driven investments in this region. The success of Stitch, with acquisitions like Efficacy Payments and ExiPay, is indicative of the burgeoning startup scene, hinting at an evolving market maturity in Africa.
