The South African fintech startup Turnstay recently secured $300,000 (over ZAR 5.4 million) in investment from two US-based venture capital firms: DFS Lab and Digital Currency Group (DCG). The company plans to use this funding to expand its operations across Africa and strengthen its position in the local market.
According to a report, Turnstay, co-founded by entrepreneurs Alon Stern and James Hedley in 2021, aims to address challenges faced by the African travel and tourism industry, including high payment processing costs. Commenting on the investment, Stern stated:
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.
Besides reducing costs, the fintech startup claims to simplify payment procedures for international travellers by using a global network of compliant companies. The arrangement allows customers in different countries to pay using their respective currencies and regular payment methods.
Stephen Deng, general partner at DFS Lab, hailed the Turnstay team for building a platform that helps unlock substantial cost savings for African hospitality businesses. Deng added that Turnstay’s two co-founders have the experience to exploit this opportunity.
“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,” Deng said.
