TurnStay to Expand Across Africa with USD 300K Investment

South African fintech company TurnStay has successfully raised R5.4 million ($300,000) from US-based venture capital firms, DFS Lab and Digital Currency Group (DCG). This funding will support TurnStay's expansion across Africa and bolster its position in the local market.

Co-founder Alon Stern emphasized that this investment highlights the investors' confidence in TurnStay's business model. "TurnStay offers a localized payment experience, charging clients in their home currency using familiar payment methods when booking accommodation. Our solution has reduced costs for some clients by 70% and halved the number of unnecessary failed transactions, leading to higher sales conversion rates," Stern explained.

TurnStay, established in 2021 by Alon Stern and James Hedley, addresses significant challenges in the African travel and tourism industry, such as the high costs of payment processing for hotels and travel accommodations. Hedley noted that merchants typically spend 12% of their revenue on payment processing, which can be the deciding factor between profit and loss. This financial burden impacts the viability of many businesses in a sector that employs over six million people in Africa.

Source: Abdullah Ajibade / TechPoint Africa