TurnStay, a South African travel-fintech startup, has secured $300,000 in funding to facilitate its expansion into new markets.

The South African travel-focused fintech company, TurnStay, has successfully obtained a funding of $300,000 USD. This funding will be utilized to facilitate the expansion of the business into other African markets, capitalizing on the substantial progress achieved thus far.

Established by seasoned entrepreneurs Alon Stern, co-founder of Slide Financial, and James Hedley, co-founder of Quicket, TurnStay effectively mitigates the financial burden associated with payment processing for African merchants and platforms operating within the travel and tourism industry. This is achieved by leveraging innovative strategies employed by prominent global booking companies.

TurnStay significantly reduces the cost of billing cards, empowering clients in the African travel and tourism industry to secure more direct bookings. By reducing commissions paid to online travel agencies like Booking.com, direct bookings positively impact the profitability of travel and tourism businesses.

The $300,000 In funding is provided by Silicon Valley and New York-based investors DFS Lab and DCG. TurnStay intends to use the capital to swiftly expand into new markets.

“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.

Stephen Deng, a general partner at DFS Lab, expressed his positive assessment of TurnStay’s initiative. He emphasized the significance of TurnStay’s offering in addressing a crucial need within the African travel and tourism industry. Deng highlighted the potential of TurnStay’s solution in generating substantial cost savings for hospitality businesses across 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,” he 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.”