South African travel-focused fintech firm TurnStay.com has secured $300 000 (over R5.4 million) in funding from Silicon Valley- and New York-based investors DFS Lab and DCG.
According to a statement, the company plans to use the funding to expand the business into Africa and build on the traction already achieved locally.
Founded by entrepreneurs Alon Stern, co-founder of Slide Financial, and James Hedley, co-founder of Quicket, TurnStay reduces the cost of billing for hotels and travel homes by up to 70%, empowering its clients in the African travel and tourism industry to get more direct bookings.
Direct bookings reduce commissions that must be paid to online travel agencies, making a difference to the bottom line of travel and tourism businesses. This is done through the use of innovative technologies, which harness the same API integration used by the world's biggest booking companies, it says.
Stephen Deng, general partner at DFS Lab, explains: “TurnStay is building a much-needed offering for the African travel and tourism industry, one that unlocks 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.”
DFS Lab backs founders who use tech to redefine what's possible in African digital commerce.
Hedley points out that getting paid can be expensive in the travel industry, as payment fees and fees levied by online travel agencies are added.
“The average merchant spends 12% of revenue on getting paid − often, this can be the difference between making a profit or a loss and dramatically affects the viability of many businesses in a sector that employs over six million people in Africa,” notes Hedley.
Utilising a global network of compliant companies, TurnStay says it reduces the cost of international payments for hotels without compromising on safety or efficiency.
TurnStay CEO Stern adds: “Securing funding from these US investors is a vote of confidence in our business model, which has already processed more than R50 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% and halved the number of unnecessary failed transactions. With a better checkout experience, sales conversion rates soar.”
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