LCP acquires minority stake in DSquares and provides new funds

Through its LCP Fund II, Lorax Capital Partners has announced the acquisition of a significant minority stake in Egypt's DSquares, an end-to-end loyalty and rewards solutions provider serving over 45 local and international clients and with a reach of more than 100 million customers.

The new investment consists of a significant capital increase to support the scaling of new business lines and to further expand the company’s geographical footprint both locally and internationally.

Algebra Ventures, an existing shareholder in DSquares, increased its investment as part of this deal.

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Founded in 2011, DSquares provides its customers with a comprehensive service offering including the set-up, and operational management of all technical and commercial aspects of their loyalty program. DSquares operates through a variety of business sectors including Banking, Telecom, FMCG, Retail, Oil & Gas. The company's merchant network has a reach spanning more than 900 brands and over 11,000 outlets across various sectors throughout Egypt, Jordan, Romania, Kenya, Tanzania, Morocco, KSA, and UAE.

In 2019, DSquares launched “Lucky”, a mobile platform providing its customers with access to discounts, offers, and convenient financial services. Today, Lucky boasts over 5M downloads, and a network covering thousands of merchants. The network includes dinning, entertainment, fashion, electronics, fitness, hospitality, furniture & home appliances, among others.

In a world where consumers are facing ever-increasing financial burdens, loyalty programs, offers, discounts, and creative financial services become an essential part of the broader segment of the population. LCP believes DSquares is very well positioned to service the growing need for value savings and the strong adoption of innovative digital solutions.

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Marwan Kenawy, Co-Founder and CEO of DSquares said, “The LCP partnership and investment will help DSquares expedite its clients and merchants expansion plans in the Middle East, Africa, and Europe and maintain its position as the loyalty & rewards solutions leader in the region.”

Momtaz Moussa, Co-founder and Managing Director of Lucky commented, “By becoming the leading offers platform, Lucky has been digitizing its users’ commerce transactions. We are utilizing this data to provide a more convenient purchasing experience as well as maximizing savings and payment flexibility. That level of understanding of user behavior is now helping us introduce financial products that would otherwise be inaccessible to most of our users.”

Ayman Essawy, Co-Founder & COO added, “Lucky continues to be very successful in attracting new users as well as increasing engagement of its existing user base. Egypt is our first market and we have plans to further expand our services across relevant markets in the Middle East & Africa. We believe that this strategic partnership with LCP will put both DSquares and Lucky on the right track to achieve their future goals.”

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