The Egyptian fintech space has been gradually pulling its weight in recent years. Last year, Algebra Ventures launched a $90 million fund for investment into tech startups in the country and, extensively, to North Africa.
Lucky, Egypt’s rising fintech that provides credit products, discounts, and cashback rewards to consumers, has announced raising $25 million in a Series A funding round — which is the largest fintech Series A investment in the country to date — led by Nclude Fintech Fund managed by the Dubai-based venture capital, Global Ventures. Lucky is lucky enough to further cements Egypt’s place as a key player in Africa’s tech landscape.
Other investors in the round include PayU, the Prosus-owned Fintech firm specializing in emerging markets; Endeavor Catalyst, Venture Souq, OTF Jasoor Ventures, Arzan Capital and Disruptech Ventures, who joined existing investors and significant shareholder Lorax Capital Partners.
Year on year, consumers are getting more informed with credit in Egypt, and Lucky, which has been playing in the region for four years, aims to strengthen its market leadership and expand its credit capabilities.
About Lucky
The startup was founded in 2018 by Momtaz Moussa and Ayman Essawy, has developed quickly since its inception, and is now Egypt’s largest merchant network. The startup is on a mission to revolutionise the Middle East and North African population with seamless shopping, payments, and savings experience by offering flexible financial and increased spending power even to consumers that traditionally lacked access to credit.
Lucky has over eight million users and connects them to a growing number of simple financing solutions, discounts, and cashback benefits of up to 50% that can be used in person or online at over 20,000 local and international merchants. Consumers can also get to pay for items in nearly 60 months’ installments.
The startup claims to have a gross sales value of 250% yearly increase with a growing positive review on the App Store and has also been awarded the best apps in Egypt by Apple.
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Lucky recently moved into Morocco and is looking to further develop in the region.
Solidifying Position as a Market Leader in Credit Facilities
Talking about the new investment, Moussa, co-founder of Lucky, said in an interview — “We are happy to finish this $25 million fundraise. The MENA region’s large young population, unbanked population, and cash-dominated economy provide us with a major market opportunity.”
We are strategically positioned to capitalize on our momentum, solidify our position as a market leader, and expand our present offering with the support of such prestigious investors,” he added.
In a statement, the general partner for Nclude FinTech Fund said —
“We are delighted to have led Lucky’s latest funding round. Nclude by Global Ventures focuses on accelerating Fintech Innovation and driving Financial Inclusion via partnerships with the leading Fintech and fintech enabled **companies.”
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“Lucky fits that descriptor perfectly and is a prime example of Egyptian fintech innovation that delivers a differentiated and scalable customer experience. Momtaz and Ayman’s vision really resonated with us, and we are excited to support them on their mission,” they added.
Meanwhile, Ayman Essawy, the other co-founder, revealed that part of their plan is to expand the company’s growth beyond the current eight million users.
“We look forward to continuing our rapid growth, increasing our eight million-strong active user base, and building out our credit capabilities with the support and guidance of our investors,” he said.
