Grace Ashiru
TurnStay, a travel-focused fintech based in South Africa, has secured $300,000 in funding to expand into additional African markets and build on its significant momentum. The $300,000 investment, provided by DFS Lab, DCG in Silicon Valley, and other investors in York, will enable TurnStay to accelerate its expansion into new regions.
Founded by experienced entrepreneurs James Hedley, co-founder of Quicket, and Alon Stern, co-founder of Slide Financial, TurnStay leverages the same strategies used by the world’s largest booking companies. This approach allows TurnStay to reduce payment costs for African merchants and platforms within the travel and tourism sector.
TurnStay provides its customers in the African travel and tourism sector the capability to receive more direct reservations while cutting card billing costs by up to 70%. Direct bookings enhance the profitability of travel and tourism enterprises by reducing the commissions paid to online travel agents like Booking.com.
“Securing funding from these US investors is a significant endorsement of our business model, which has already processed over ZAR50 million (US$2.8 million) in transactions. TurnStay offers a localized payment experience, charging clients in their home currency using familiar payment methods when booking accommodation. TurnStay’s solution has lowered costs for some clients by 70 percent and halved the number of unnecessary failed transactions. With an improved checkout experience, sales conversion rates have surged,” said Stern, the startup’s CEO.
TurnStay is creating a highly anticipated product for the African travel and tourist market, a development that, according to Stephen Deng, general partner at DFS Lab, has the potential to significantly reduce costs for lodging establishments across the continent.
“We believe the founders are the ideal team to seize this opportunity, blending extensive industry experience with a proven track record of delivering market-leading products,” Deng stated.
“DFS Lab supports founders who leverage technology to redefine possibilities in African digital commerce. TurnStay not only addresses a vital niche, but we are confident that their innovations will boost the bottom line for the African travel and tourism sector.”
