TurnStay, a South African travel-fintech startup, has secured $300,000 in funding to facilitate its expansion into new markets.
The South African travel-focused fintech company, TurnStay,
has successfully obtained a funding of $300,000 USD. This funding will be
utilized to facilitate the expansion of the business into other African
markets, capitalizing on the substantial progress achieved thus far.
Established by seasoned entrepreneurs Alon Stern, co-founder
of Slide Financial, and James Hedley, co-founder of Quicket, TurnStay
effectively mitigates the financial burden associated with payment processing
for African merchants and platforms operating within the travel and tourism
industry. This is achieved by leveraging innovative strategies employed by
prominent global booking companies.
TurnStay significantly reduces the cost of billing cards,
empowering clients in the African travel and tourism industry to secure more
direct bookings. By reducing commissions paid to online travel agencies like
Booking.com, direct bookings positively impact the profitability of travel and
tourism businesses.
The $300,000 In funding is provided by Silicon Valley and
New York-based investors DFS Lab and DCG. TurnStay intends to use the capital
to swiftly expand into new markets.
“Securing funding from these US investors is a vote of
confidence in our business model, which has already processed more than ZAR50
million (US$2.8 million in transactions. TurnStay creates a localised payment
experience, charging clients in their home currency using familiar payment
methods when booking accommodation. TurnStay’s solution has reduced costs for
some clients by 70 per cent and halved the number of unnecessary failed
transactions. With a better checkout experience, sales conversion rates soar,”
Stern, the startup’s CEO, said.
Stephen Deng, a general partner at DFS Lab, expressed his
positive assessment of TurnStay’s initiative. He emphasized the significance of
TurnStay’s offering in addressing a crucial need within the African travel and
tourism industry. Deng highlighted the potential of TurnStay’s solution in
generating substantial cost savings for hospitality businesses across the
continent.
“We believe the founders are the perfect team to tackle this
opportunity, combining deep industry experience with a proven history of
shipping market-leading products,” he said.
“DFS Lab backs founders who use tech to redefine what’s
possible in African digital commerce. TurnStay not only fills a critical niche,
but we believe what they’re building will raise the bottom line for the African
travel and tourism industry.”