South Africa-based travel fintech startup TurnStay has announced the raise of $2 million in a seed funding round. This funding will be used to expand its operations across African markets and enhance its payment infrastructure for travel and tourism operators.
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TurnStay is addressing one of the travel sector’s biggest pain points, cross-border payments. By using a merchant-of-record model combined with payment orchestration, the startup enables local travel merchants to accept card payments in travellers’ home currencies while receiving settlements locally via stablecoins.
This model helps to lower payment processing fees by as much as 70%. It also accelerates settlement times and improves booking conversion rates. The approach mirrors strategies used by global booking giants but is tailored for Africa where infrastructure and regulatory challenges often affect international payments.
The $2 million seed round was led by First Circle Capital with participation from TLCom Capital, Enza Capital, Incisive Ventures, CVVC, and Equitable Ventures. This follows a $300,000 pre-seed round in July 2024 and shows growing investor confidence in TurnStay’s market opportunity and execution capability.
TurnStay has already processed over ZAR250 million (approx. $13.5 million) in transaction volume and secured partnerships with key travel industry players. The new funding will support further product development and expansion into additional African markets. This is part of the company’s broader ambition to level the playing field for local travel operators competing with global platforms.
“This seed funding represents a major milestone in our mission to make global payment infrastructure accessible to African travel businesses,” said Alon Stern, co-founder of TurnStay. “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 is redefining travel bookings for Africa and other emerging markets,” added Agnes Aistleitner Kisuule, partner at First Circle Capital. “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.”
As travel across the continent continues to rebound and digitisation in tourism accelerates, TurnStay is positioning itself as a vital fintech layer for Africa’s tourism economy.
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