TurnStay, a travel-specific fintech based in South Africa, has successfully secured $300,000 in funding. This new investment aims to fuel the company’s expansion into additional African markets and build upon its strong momentum. The investment, provided by DFS Lab, DCG in Silicon Valley, and other investors in York, is poised to accelerate TurnStay’s reach into new regions.
Revolutionizing Travel Payment Strategies:
Co-founded by industry veterans James Hedley (co-founder of Quicket) and Alon Stern (co-founder of Slide Financial), TurnStay operates using the same strategies as the world’s largest booking companies. This innovative approach allows TurnStay to significantly reduce payment costs for African merchants and platforms within the travel and tourism sector.
Empowering African Travel Businesses:
TurnStay’s unique offering provides customers in the African travel and tourism sector the ability to receive a higher volume of direct reservations while slashing card billing costs by up to 70%. Direct bookings serve to bolster the profitability of travel and tourism enterprises by reducing the commissions paid to online travel agents like Booking.com.
Validation and Projection for TurnStay
According to CEO Alon Stern, “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.” Stern emphasizes that TurnStay’s solution has effectively lowered costs for some clients by up to 70% and halved the number of unnecessary failed transactions, while boosting sales conversion rates.
Industry Recognition and Future Impact
Stephen Deng, a general partner at DFS Lab, pointed out the potential of TurnStay’s initiative 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,” stated Deng. He also highlighted that “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.”