Early-stage venture capital firm Rally Cap has partially exited its investment in South African fintech Stitch, following the company’s recent $55 million Series B raise. While the size of Rally Cap’s investment and the return remain undisclosed, the move marks a notable milestone in Africa’s startup exit landscape.
Founded by Hayden Simmons in 2020, Rally Cap began as an investment collective before raising its first fund — a $30 million fund — in 2022. In 2024, the firm expanded its focus with the launch of a $5 million climate tech fund, in response to growing founder interest and internal efforts to broaden its mandate beyond fintech.
“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. In Africa, its portfolio includes companies such as Termii, Circadian, Precium, and Cauridor.
Stitch has been on a notable growth trajectory. In April 2025, the company raised its $55 million Series B, led by investors including QED Investors, Norrsken22, Flourish Ventures, Glynn Capital, and angel investors such as Trevor Noah.
Earlier in 2025, Stitch acquired ExiPay, rebranding it to “Stitch In‑Person Payments” to enable in-person card and alternative payments for enterprises and retail clients. More recently, the company completed its acquisition of Efficacy Payments, giving it direct card acquiring capabilities in South Africa.
The partial exit from Stitch comes as exits are becoming a more prominent focus across the African startup ecosystem. While funding rounds have grown significantly over the past few years, high-profile exits have remained relatively rare.
However, some firms are now beginning to see substantial returns. Notably, the value of Oui Capital’s initial $150,000 investment in Moniepoint grew to $8 million, enough to return its entire fund. Silverback Holdings also recently recorded a 5x return on its investment in OmniRetail.
These developments hint at a shifting landscape where investors are beginning to see real pathways to liquidity, a crucial signal for the long-term viability of early-stage investing in Africa. Rally Cap’s exit from Stitch adds to this growing momentum, reinforcing the case for more venture-backed success stories across the continent.
