Stitch Secures $55M Series B as Rally Cap Reduces Stake

Rally Cap’s partial exit follows Stitch’s growth push and a Series B round.

South African fintech company Stitch has closed a successful $55 million Series B funding round, attracting global interest and further solidifying its role in Africa’s digital payments ecosystem. Among the developments tied to the raise, Rally Cap, an early-stage venture capital firm, has partially exited its position in Stitch, marking a notable moment in the region’s evolving startup investment landscape.

Rally Cap, founded by Hayden Simmons in 2020, initially invested in Stitch during its early growth phase. While financial details of the exit remain private, the firm’s involvement reflects a broader trend of early investors beginning to realize returns as African startups reach more advanced stages of maturity.

Stitch continues to build momentum. Alongside this latest funding round, led by QED Investors, Norrsken22, and Flourish Ventures, among others, the company has made strategic acquisitions, including ExiPay (now Stitch In?Person Payments) and Efficacy Payments, enhancing its capabilities in both card acquiring and in-person payment solutions in South Africa.

According to Rally Cap, the decision to diversify beyond fintech, including recent moves into climate-focused investments, came in response to increased founder interest in sustainability and broader innovation trends across emerging markets.

Though exits in Africa’s tech space have historically been limited, activity is starting to pick up. Recent outcomes like Oui Capital’s return on Moniepoint and Silverback Holdings’ exit from OmniRetail signal encouraging momentum for the continent’s growing venture ecosystem.

As Stitch expands its infrastructure and more companies reach scale, these early liquidity moments may serve as important signals, both for investors and founders, about the maturing opportunity landscape in Africa.