Fintech centered on travel in South Africa In order to support its growth in African markets and improve its fintech infrastructure for travel and tourism operators, TurnStay has raised US$2 million in a seed round of funding.
TurnStay, which was founded by seasoned businessmen James Hedley, a co-founder of Quicket, and Alon Stern, a co-founder of Slide Financial, lowers the cost of payment for African platforms and merchants in the travel and tourism industry by utilizing the same “tricks” that the largest booking companies in the world employ.
TurnStay uses stablecoins to settle funds locally and processes card payments in the traveler’s home country using a merchant-of-record model in conjunction with payment orchestration. This method increases booking conversion rates, reduces settlement times, and reduces payment fees by up to 70%.
In July 2024, TurnStay raised $300,000 in funding. Leading US and African venture capital firms, including TLCom Capital, Enza Capital, Incisive Ventures, CVVC, and Equitable Ventures, participated in a US$2 million seed round led by First Circle Capital.
The funding will support TurnStay’s swift growth in African markets and improve its fintech capabilities for tour and travel agencies.
“This seed funding represents a major milestone in our mission to make global payment infrastructure accessible to African travel businesses. Since our pre-seed round last year, we’ve processed over ZAR250 million in transactions and secured partnerships with industry leaders. This validates our approach and demonstrates the substantial value we create for the industry. We’re not just reducing costs – we’re enabling African travel companies to compete on a level playing field with international platforms,” Stern said.
“TurnStay is redefining travel bookings for Africa and other emerging markets. Focusing on the travel and tourism segment, TurnStay can deliver a superior customer experience and build a sticky, defensible moat that sets it apart from generalist payment providers. With strong early traction, an exceptional founding team, and a massive untapped market, TurnStay is laying the foundation for the next generation of cross-border travel infrastructure,” said Agnes Aistleitner Kisuule, partner at First Circle Capital.
