Lucky, the leading app for credit products, offers and cashback rewards in Egypt has announced that it has closed $25 million in funding. This marks the largest fintech Series A round so far in Egypt. Prior to this, the country’s grocery delivery startup Rabbit got funded a few months back.
Stellar list of investors
The investment round was led by Nclude by Global Ventures, the new fintech fund recently announced by its lead investors Banque Misr, National Bank of Egypt and Banque du Caire, Egypt’s largest national banks and Global Ventures, a leading MEA focused venture capital firm.
Also, major investment came from PayU, the Prosus-owned fintech firm specialising in emerging markets, Endeavor Catalyst that invested in Payhawk’s unicorn round, Venture Souq, Oman Technology Fund, Arzan capital and Disruptech Ventures alongside existing investors and the significant shareholder Lorax Capital Partners.
How will it use funds?
Lucky will use the proceeds of this financing round to increase market leadership and build its credit capabilities as customers become more educated and experienced using credit.
Momtaz Moussa, co-founder of Lucky, said: “We are delighted to complete this $25 million fund raise. The MENA region’s huge unbanked, young population and the cash-dominated economy is a significant market opportunity for us. With the backing of such esteemed investors, we are perfectly positioned to build on our momentum, cement our position as market leader and expand our current offering.”
Ayman Essawy, co-founder of Lucky, said: “We are honoured to be Nclude by Global Ventures’ first investment, in what is a momentous strategic development for Egypt. 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.”
Eslam Darwish, General Partner of the Nclude FinTech Fund, commented: “We are delighted to have led Lucky’s latest funding round. Nclude by Global Ventures is focused on accelerating Fintech Innovation and driving Financial Inclusion via partnerships with the leading Fintech and fintech enabled companies. 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.”
Founded in Egypt in 2018 by Momtaz Moussa and Ayman Essawy, Lucky has grown rapidly since its inception. It is touted to have the largest merchant network in Egypt. The fintech startup Lucky works with the mission to revolutionise the way MENA’s population shops, pays and saves.
The company has witnessed a whopping 250% year-on-year growth in gross merchandise value, with great feedback, including an App Store award from Apple for best apps in Egypt. Recently, Lucky expanded into Morocco and is exploring further regional expansion.
What does it do?
Lucky brings seamless financial flexibility and increased spending power to MENA (the Middle East and North Africa), where many consumers have not traditionally had access to credit.
Since its debut, the company has grown to over eight million active users and connects them to a growing range of easy-to-use credit products, discounts and cashback rewards, which can be used in person and virtually with tens of thousands of local and global brands.
Whenever users shop online, they get up to 20% cashback. Users can shop at over 100 websites and earn up to EGP 3,500 ($225) cashback per month without paying any fee. All that users need to do is find a website by browsing through the Lucky site and click on their favourite website. Next, users have to shop as usual and cashback will appear on their wallet on reporting their purchase to Lucky. The cashback can be used to buy from over 5,000 stores by paying via Lucky app or encash the same to their bank account on a quarterly basis.