South African travel-focused fintech TurnStay has secured US$300,000 in funding to expand the business into other African markets and build on the significant traction already achieved.
Founded by experienced entrepreneurs Alon Stern, co-founder of Slide Financial, and James Hedley, co-founder of Quicket, TurnStay reduces the cost of getting paid for African merchants and platforms in travel and tourism by harnessing the same “tricks” used by the world’s biggest booking companies.
TurnStay reduces the cost of billing cards by up to 70 per cent and empowers its clients in the African travel and tourism industry to get more direct bookings. Direct bookings reduce the commissions due to online travel agencies such as Booking.com, making a difference to the bottom line of travel and tourism businesses.
The US$300,000 funding comes from Silicon Valley and New York-based investors DFS Lab and DCG, and TurnStay will use the capital to move swiftly 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, general partner at DFS Lab, said TurnStay was building a much-needed offering for the African travel and tourism industry, one that unlocks 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.”
