TurnStay, a South African travel-focused fintech, has raised $2 million (over R34 million) in seed funding to transform Africa’s fragmented travel and tourism payment infrastructure.
First Circle Capital led the round, which included participation from top-tier U.S. and African venture capital firms, including TLCom Capital, Enza Capital, Incisive Ventures, CVVC, and Equitable Ventures.
Announcing this raise, Co-founder TurnStay James Hedley, wrote via a linkedin post,
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“After a few years of working to bring world-class financial infrastructure to African travel merchants, I am thrilled to share that thanks to the incredible work of my co-founder Alon Stern, we have successfully closed our seed round. This milestone brings us closer to our mission: reducing the friction of getting paid in the African travel industry and empowering merchants to compete globally”.
Also speaking, Agnes Aistleitner Kisuule, partner at First Circle Capital said,
“TurnStay is redefining travel bookings for Africa and other emerging markets. Their focus on travel and tourism enables them to deliver a superior user experience while creating a strong, defensible moat in a massive underserved market”.
With this fresh funding, TurnStay plans to expand aggressively across African markets, investing in its fintech infrastructure and continuing its mission to power the next generation of cross-border travel and payment solutions for the continent.
TurnStay operates in a growing African travel and tourism market, projected to reach $24.42 billion in revenue by 2024, supporting over six million jobs. The average travel and tourism business spends 12% of its revenue on getting paid. Frequently, this is the difference between making a profit or a loss, and it dramatically affects the viability of many businesses in a sector that employs over 6 million people in Africa.
Payment companies in Africa often classify travel and tourism businesses as high-risk. As a result, they charge these businesses a fee ranging from 3.5% to 6% to process payments from international cards. Furthermore, cardholder banks also charge their clients a 4% fee to convert funds into African currencies.
TurnStay aims to level the playing field for African travel businesses by providing access to fintech tools typically reserved for global players, reducing reliance on OTAs, and addressing structural challenges like high card fees and settlement delays.
Founded in 2021 by Alon Stern and James Hedley, the TurnStay platform is an intersection of fintech and travel championing low-cost experiences in travel payments. The startup addresses inefficiencies in cross-border payments, such as high transaction fees, failed payments, and lengthy settlement times.
Key Features
Merchant-of-Record Model: TurnStay processes card payments in the traveler’s home country and settles funds locally using stablecoins, reducing transaction fees by up to 70%, speeding up settlements, and improving booking conversion rates by minimizing payment failures.
Direct Bookings: By bypassing online travel agencies (OTAs) like Booking.com, which charge high commissions, TurnStay enables African travel operators to secure more direct bookings, boosting profitability.
Better checkout experience: International banks frequently block transactions from Africa, resulting in conversion rates that are less than half the industry standard. TurnStay creates a localized payment system, charging clients in their currency using familiar payment methods, thus halving the number of unnecessary failed transactions.
API Integration: The platform integrates with leading booking engines and property management systems, allowing seamless adoption without disrupting existing workflows.
Localized Payments: Customers can pay in their home currency using familiar payment methods, enhancing the checkout experience and reducing failed transactions by up to 50%.
With its innovative approach to solving systemic payment challenges in Africa’s booming travel industry, TurnStay is poised to redefine cross-border tourism transactions.
As travel-focused fintech expands its footprint and refines its technology, it is well-positioned to become a cornerstone of Africa’s travel ecosystem, driving economic growth and global competitiveness for local businesses.