TurnStay, a South African fintech travel startup, has raised US$2 million in a seed round funded by First Circle Capital, with support from other leading US and African venture capitalists, including TLCom Capital, Enza Capital, Incisive Ventures, CVVC, and Equitable Ventures. This latest funding comes after a previous US$300,000 raise in July 2024 and will supercharge the company’s expansion, allowing it to scale its fintech infrastructure in the African travel and tourism sector.
Established by experienced businessmen Alon Stern, co-founder of Slide Financial, and James Hedley, co-founder of Quicket, TurnStay is committed to addressing the huge payment issues experienced by African travel companies. The company wants to simplify payment processing for travel and tourism merchants to be more cost-efficient and affordable.
Innovative Payment Solutions for African Travel Businesses
TurnStay is redefining how travel merchants in Africa handle payments by utilizing a merchant-of-record model combined with payment orchestration. This model allows TurnStay to process card payments in the traveler’s home country while settling the funds locally using stablecoins. The result is a dramatic reduction in payment fees—up to 70 percent lower—while also shortening settlement times and improving booking conversion rates.
The core value proposition of TurnStay is its ability to lower costs for African travel businesses, enabling them to compete with global booking platforms. This is achieved by leveraging the same payment techniques used by some of the world’s largest global travel companies, helping local businesses process transactions more efficiently.
Strategic Expansion Plans Across African Markets
The newly secured US$2 million in funding will fuel TurnStay’s rapid expansion across African markets. As the company strengthens its fintech infrastructure, it aims to increase its presence in the travel and tourism sector, which has immense potential for growth across the African continent.
With over ZAR250 million in transactions already processed, TurnStay is gaining strong traction in the industry. The company has also established key partnerships with leading players in the sector, further validating its approach and increasing its impact in the travel payment ecosystem.
Supporting African Travel Businesses in a Competitive Market
Alon Stern, CEO of TurnStay, commented on the significance of the funding round: “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.”
TurnStay’s success can be attributed to its ability to tackle critical pain points in the African travel market, including high payment processing fees, long settlement times, and barriers to global payment infrastructure. The company is empowering local operators to offer global-standard payment systems while reducing costs and improving the overall customer experience.
Positioning TurnStay as the Future of Cross-Border Travel Payments
Agnes Aistleitner Kisuule, partner at First Circle Capital, expressed her support for TurnStay’s growth, saying, “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.”
With its innovative model and forward-thinking approach, TurnStay is positioning itself as a leading fintech player in the travel industry. The company’s payment solutions are enabling African businesses to enhance their competitive edge and participate more actively in the global tourism market.
What’s Next for TurnStay in 2025 and Beyond?
TurnStay aims to keep innovating in the travel and fintech sectors. Looking to grow its market share and further develop its payment infrastructure, the company intends to keep pushing digital development in African tourism. The injection of new financing will help the company achieve its aggressive objectives to expand its operations and improve the standard of its services in African markets.
In the long run, TurnStay’s vision is still to link Africa’s travel operators with the international market, to empower them to offer smooth and affordable payment services that spur economic growth and tourism development on the continent.
With its vision of a more sustainable and inclusive future for African tourism enterprises, TurnStay is laying the groundwork for a new travel payment era—one where local players can compete with global giants without the added burden of high costs.
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