TurnStay, a South African travel-focused fintech, has raised $300,000 in funding to expand into other African markets and build on its substantial momentum.
TurnStay will use the US$300,000 cash, which comes from investors DFS Lab and DCG in Silicon Valley and other York, to expand quickly into other areas.
TurnStay was founded by seasoned businessmen James Hedley, a co-founder of Quicket, and Alon Stern, a co-founder of Slide Financial. By utilising the same “tricks” employed by the largest booking companies worldwide, TurnStay lowers the cost of payment for African merchants and platforms in the travel and tourism industry.
TurnStay gives its customers in the African travel and tourism sector the ability to receive more direct reservations while slashing the cost of card billing by up to 70%. Direct bookings improve the bottom line of travel and tourism enterprises by lowering the commissions paid to online travel agents like Booking.com.
“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.
TurnStay is developing a much-needed product for the African travel and tourist market, according to Stephen Deng, general partner at DFS Lab, one that may save significant costs for lodging establishments all throughout 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,” Deng 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.”
Read more on Tech Gist Africa:
Orca, a South African startup, has raised $550,000 to combat fraud in emerging markets
Adumo, a South African fintech company, have been acquired by Lesaka for $85.9 million.
Spatialedge, an AI startup based in South Africa, secures $3.1 million in funding
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