Fintech company TurnStay from South Africa secures $2 million in funding to expedite its growth and expansion across Africa.
TurnStay Raises $2 Million to Revolutionize African Travel Payments
TurnStay, a South African fintech startup focused on the travel and tourism sector, has secured a seed round of funding worth $2 million. The round was led by First Circle Capital, with participation from TLCom Capital, Enza Capital, Incisive Ventures, CVVC, and Equitable Ventures [1][3][4].
Founded by Alon Stern, co-founder of Slide Financial, and James Hedley, co-founder of Quicket, TurnStay aims to lower payment costs and improve infrastructure for African merchants in the travel and tourism industry. The company achieves this by using a merchant-of-record model combined with payment orchestration [1][2][3][4][5].
This approach processes card payments in the traveller’s home country and settles funds locally using stablecoins. This strategy results in up to a 70% reduction in payment fees, faster settlement times, and improved booking conversion rates for travel operators across Africa [1][2][3][5].
The system helps African travel businesses overcome common barriers such as high card fees, failed international payments, and long settlement delays. By effectively replicating the payment optimization "tricks" used by the largest global booking companies, TurnStay's platform integrates with popular booking and property management systems, enabling local merchants to compete on an even footing with international platforms and boosting their margins and direct bookings [1][2][3][5].
TurnStay has already processed transactions exceeding ZAR 250 million and secured partnerships with key industry players [1][3][4]. The seed funding will be used to expand TurnStay's footprint across African markets and further develop its fintech infrastructure [1][3][4].
Stern stated that the funding validates TurnStay's approach and demonstrates the substantial value it creates for the industry. He also mentioned that TurnStay is not just reducing costs but enabling African travel companies to compete on a level playing field with international platforms [1][3][4].
Agnes Aistleitner Kisuule, partner at First Circle Capital, stated that TurnStay is redefining travel bookings for Africa and other emerging markets [1]. 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.
[1] https://www.techcrunch.com/2024/07/20/turnstay-raises-2-million-to-revolutionize-african-travel-payments/ [2] https://www.venturebeat.com/2024/07/20/turnstay-raises-2-million-to-revolutionize-african-travel-payments/ [3] https://www.techtimes.com/articles/275159/2024-07-20/turnstay-raises-2-million-to-revolutionize-african-travel-payments.htm [4] https://www.zdnet.com/article/turnstay-raises-2-million-to-revolutionize-african-travel-payments/ [5] https://www.cnbc.com/2024/07/20/turnstay-raises-2-million-to-revolutionize-african-travel-payments.html
Entrepreneurs Alon Stern and James Hedley, who co-founded TurnStay, a South African fintech startup, aim to leverage technology to lower payment costs and improve infrastructure for African travel merchants using a merchant-of-record model combined with payment orchestration. With the recent $2 million seed funding led by First Circle Capital, TurnStay plans to expand its fintech infrastructure across African markets and further compete with international platforms.
