Fintech
South African Travel Fintech TurnStay Raises $300,000 in Funding to Expand into New Markets
South African travel fintech TurnStay has raised $300,000 in funding to expand its operations into additional African markets and build on the significant traction it has already gained.
Founded by seasoned entrepreneurs Alon Stern, co-founder of Slide Financial, and James Hedley, co-founder of Quicket, TurnRemain reduces payment costs for African merchants and platforms in the travel and tourism sectors, using the same “tricks” used by the world’s largest booking companies.
TurnStay reduces the cost of billing cards by up to 70 percent and enables its clients in the African travel and tourism industry to get more direct bookings. Direct bookings reduce the commissions owed to online travel agencies like Booking.com, making a difference in the bottom line of travel and tourism businesses.
The $300,000 funding comes from investors in Silicon Valley and New York DFS Laboratory AND DCGand TurnStay will use the capital to rapidly enter new markets.
“Securing funding from these US investors is a vote of confidence in our business model, which has already processed more than ZAR 50 million (US$ 2.8 million) in transactions. TurnStay creates a localized payment experience, charging customers in their local currency using familiar payment methods when booking accommodation. TurnStay’s solution has reduced costs for some customers by 70 percent and cut the number of unnecessary failed transactions in half. With a better payment experience, sales conversion rates skyrocket,” said Stern, the startup’s CEO.
Stephen Deng, General Partner at DFS Lab, said TurnStay is creating a much-needed offering for the African travel and tourism industry that will enable significant cost savings for hotel operations across the continent.
“We believe the founders are the perfect team to address this opportunity, combining deep industry experience with a proven history of shipping market-leading products,” he said.
“DFS Lab supports founders who are using technology to redefine what is possible in African digital commerce. Not only does TurnStay fill a critical niche, but we believe what they are building will increase profits for the African travel and tourism industry.”