Marking its first investment, LCP Fund II (LCP) announces today the acquisition of a significant minority stake in DSQ Group, the mother company of Dsquares and Lucky. 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.
DSQ Group is one of the leading end-to-end loyalty and rewards solutions providers in the Central Europe Middle East and Africa region serving over 45 local and international clients and with a reach of more than 100 million customers.
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.
“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," said Marwan Kenawy, cofounder and CEO of DSQUARES
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 boasts an unparalleled merchant network with 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, 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 dinning, entertainment, fashion, electronics, fitness, hospitality, furniture and home appliances, among others.
“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,” said Momtaz Moussa, cofounder and managing director of Lucky.