Fintech company Stitch in South Africa experienced a partial divestment as Rally Cap concluded its stake sale.
Rally Cap Partially Exits Investment in South African Fintech Stitch, Signaling Maturing African Startup Ecosystem
The African startup ecosystem is showing signs of maturity, as evidenced by the recent partial exit of early-stage venture capital firm Rally Cap from its investment in South African fintech company Stitch. This significant development comes following Stitch's successful $55 million Series B funding round in April 2025.
Stitch, a rapidly growing fintech company in South Africa, secured the funding round with backing from prominent investors such as QED Investors, Norrsken22, Flourish Ventures, Glynn Capital, and angel investors like Trevor Noah. This strong confidence in Stitch's continued expansion and impact in the region is a testament to its rising prominence in South Africa's fintech ecosystem.
Rally Cap, founded in 2020 by Hayden Simmons, typically invests between $200,000 and $500,000 in pre-seed and seed-stage startups. Beyond Stitch, the firm's African portfolio includes companies like Termii, Circadian, Precium, and Cauridor. With the partial exit from Stitch, Rally Cap is demonstrating its commitment to managing its portfolio and supporting growth-stage fintech companies in Africa.
The Stitch exit also underscores the momentum in Africa's startup ecosystem. The company's acquisitions, such as ExiPay and Efficacy Payments, have given it direct card acquiring capabilities within South Africa. These moves indicate a maturing ecosystem where investors are finding tangible liquidity routes.
However, while funding rounds have increased in Africa's startup ecosystem, notable exits are still relatively uncommon. This partial exit from Rally Cap is, therefore, a key milestone in Africa's startup exit landscape.
In addition, Rally Cap has recently broadened its investment mandate beyond fintech into areas like climate tech, reflecting increasing founder interest. By 2024, the firm had expanded its scope with a $5 million climate tech fund.
Other notable exits in Africa's startup ecosystem include Silverback Holdings achieving a 5x return from its stake in OmniRetail. These developments suggest a promising future for early-stage investing in Africa, with more sustainable and profitable opportunities on the horizon.
The partial exit of Rally Cap from its investment in fintech company Stitch within South Africa's startup ecosystem signals a maturing finance landscape, as it offers a notable liquidity route for early-stage venture capital firms. Rally Cap's commitment to growth-stage fintech companies in Africa is further demonstrated by this development, as they maintain a diversified portfolio beyond Stitch.
