LCP Fund II makes inaugural investment in Egyptian loyalty solutions provider
LCP Fund II, managed by Egypt focused private equity firm Lorax Capital Partners, has announced the acquisition of a significant minority stake in DSQ Group, one of the leading end-to-end loyalty and rewards solutions providers in the CEMEA region serving over 45 local and international clients and with a reach of more than 100 million customers.
LCP’s investment mainly consisted 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. The transaction also included the acquisition of Ezdehar Egypt Mid-Cap Fund’s minority stake. Furthermore, Algebra Ventures, one of Egypt’s leading VC firms and an existing shareholder in DSQ Group, increased its investment as part of this transaction.
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 programme.
Dsquares operates through a variety of business sectors including banking, telecom, FMCG, retail, oil and gas. The company boasts a merchant network 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, the group launched Lucky, a mobile platform providing its customers with access to discounts, offers and convenient financial services. Today, Lucky boasts over 5 million downloads, and a network covering thousands of merchants. The network includes dining, entertainment, fashion, electronics, fitness, hospitality, furniture & home appliances, among others.
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 and rewards solutions leader in the region.”
Momtaz Moussa, co-founder and managing director of Lucky added, “By becoming the leading offers platform, Lucky has been digitising its users’ commerce transactions. We are utilising this data to provide a more convenient purchasing experience as well as maximising savings and payment flexibility. That level of understanding of user behaviour is now helping us introduce financial products that would otherwise be inaccessible to most of our users.”
Al Tamimi & Company law firm acted as the legal advisor to LCP on the deal. The company’s legal advisor was Youssef & Partners.
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