- TurnStay, a South African travel-focused fintech, has secured R5.4 million ($300,000) from United States-based Venture capital firms, DFS Lab and Digital Currency Group (DCG).
- The fintech plans to use the new funding round for expansion efforts across Africa and strengthen its position in the local market.
- Alon Stern, a co-founder of TurnStay, stated that the investment from the investors reflects their confidence in the company's business model.
“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% and halved the number of unnecessary failed transactions. With a better checkout experience, sales conversion rates soar,” he added.
Stern, co-founder of Slide Financial, a consumer finance company and James Hedley co-founder of Quicket, a ticketing platform, founded TurnStay in 2021 to address a critical challenge in the African travel and tourism industry including the high cost of payment processing for hotels and travel accommodations.
James Hedley disclosed that the average merchant commits 12% of revenue to get paid, which can often be the difference between making a profit or incurring a loss. This affects the viability of many businesses in a sector that employs over six million people in Africa.
However, to address this, the fintech claims to reduce costs by up to 70% through innovative technology and API integration. This allows businesses to attract more direct bookings, thereby eliminating the hefty commissions usually paid to online travel agencies, directly impacting the profitability of travel and tourism enterprises throughout the continent.
In addition to the cost reduction, the company simplifies payment procedures for international travelers by using a global network of compliant companies. This guarantees secure and effective transactions, allowing customers to pay in their local currency using familiar payment methods.
The African travel and tourism market is projected to reach a revenue of $24.42 billion by 2024. It is expected to grow annually at 4.98% resulting in a market volume of $29.66 billion by 2028.
