Amadeus Capital Partners, a global technology investor, in partnership with MTN, a multinational telecommunications group, have invested $40m in Travelstart, an online travel agency in Africa.

Andrea Traversone, Partner, Amadeus, said: “Our investment in Travelstart is among the largest venture investments in South Africa in the last five years.”

Traversone added that Africa has one of the fastest growing middle classes in the world that are fast adopting e-commerce and mobile internet access.

“These macro trends support Travelstart’s growth and bode well for their strategic relationship with MTN. With this transaction, Amadeus has demonstrated its commitment to strong investment opportunities such as Travelstart that respond to these trends in emerging markets,” she said.

Travelstart was originally founded in Sweden in 1999 by its founder and CEO Stephan Ekbergh.

Operating in Africa from its Cape Town headquarters since 2006, the firm became the market leader in South Africa with over 75% market share and entered other emerging markets across the Middle East and Africa, achieving revenues above $200m in 2015 and market leadership positions in Nigeria, Egypt, and Kenya.

The growth investment by Amadeus and MTN will support the expansion of Travelstart into key markets and the growth of its team and product offering.

Travelstart is also developing a strategic partnership with MTN that will support their expansion via its unrivalled mobile network in Africa.

Herman Singh, Group Chief Digital Officer, MTN, said this investment strongly complements MTN’s existing investments in online and e-commerce in retail, marketplaces, classifieds and travel.

“This investment in the largest multi-national player in a very large and rapidly growing market positions MTN as an enabler of exciting new leading edge businesses,” he said.

“The MTN footprint, subscriber base, payment capability, network and brand awareness strongly underpin the synergies already being manifested in our other investments. We look forward to working with Amadeus and the Travelstart team to accelerate the business development of this adjacency,” he said.

The investment comes at an inflexion point for Travelstart, as the firm capitalises on a boom in online travel bookings across Africa and Middle East, according to the company’s CEO Ekbergh.

“Air travel in Africa is expected to grow significantly faster than in most regions globally, with a host of low cost carriers targeting the region. Alongside the strategic partnership with Africa’s best connected mobile operator MTN, Amadeus’ investment and guidance will prove invaluable in continuing to build our market leading position,” he said.