TurnStay, a South African fintech startup with a focus on the travel sector, has successfully raised $300,000 to fuel its expansion across additional African markets and to further capitalize on the substantial progress it has already made.
The company was established by seasoned entrepreneurs Alon Stern, who previously co-founded Slide Financial, and James Hedley, who co-founded Quicket. TurnStay’s innovative approach aims to diminish the financial burden on African merchants and travel platforms when processing payments. It employs strategies similar to those utilized by leading global booking firms.
By optimizing payment processing, TurnStay has managed to slash the costs associated with card transactions by as much as 70 percent. This significant reduction enables clients within the African travel and tourism sector to increase their direct bookings. By circumventing the need for online travel agencies like Booking.com, which typically take a commission, TurnStay’s clients can improve their profit margins.
The recent injection of $300,000 in capital was contributed by investors from Silicon Valley and New York, including DFS Lab and DCG. TurnStay plans to use this investment to rapidly penetrate new markets.
Alon Stern, the CEO of TurnStay, expressed that the financial backing from these American investors signifies strong confidence in the company’s business strategy. TurnStay has already processed transactions amounting to over 50 million South African Rand (approximately $2.8 million).
The company has revolutionized the payment experience for customers by allowing them to pay in their local currency using preferred payment methods when booking accommodations. This has not only cut costs for some clients by 70 percent but also decreased the incidence of failed transactions by half. As a result, the improved checkout process has led to higher sales conversion rates.
Stephen Deng, a general partner at DFS Lab, commented on the significance of TurnStay’s service for the African travel and tourism industry. He highlighted the potential for substantial cost savings for hospitality businesses across the continent. Deng praised the founders for their deep industry knowledge and track record of developing leading products in the market.
DFS Lab supports entrepreneurs who leverage technology to transform African digital commerce. Deng believes that TurnStay’s specialized service will not only meet a crucial need but also enhance the profitability of the African travel and tourism sector as a whole.
