Lorax Capital Partners Fund (LCP), an Egyptian private equity firm founded in 2015, with approximately US$ 200 million of committed capital under management assigned primarily from the Egyptian American Enterprise Fund has announced its first investment, an acquisition of a minority stake in DSQ Group.
DSQ Group is a major leader among the loyalty and rewards solution providers across Central Europe, the Middle East, and the African region (CEMENAP) assisting more than 45 local and international clients. The firm owns two sub-companies, namely Dsqaures and Lucky, which Lorax Capital Partners Fund is investing in.
The aim of the significant capital increase through their first investment is to propel the growth of new businesses and contribute to the expansion of DSQ Group’s geographical footprint locally and internationally.
In addition to the capital increase, Lorax Capital Partners Fund has taken up the acquisition of a minority stake in Ezdehar Egypt Mid-Cap Fund, also in Algebra Ventures, one of Egypt’s leading venture capital (VC) firms, and a present shareholder in DSQ Group.
Established in 2011, it offers businesses end-to-end loyalty and rewards solutions. Dsquares also designs personalized programs for businesses, offers operational management of any technical and commercial feature, creates analytical reports, and gives support throughout the phases of project development.
Marwan Kenawy, Co-founder and CEO of Dsquares in an official press release explained the transaction from LCP and how it will enhance the company and support its aim of expanding. He 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.”
Meanwhile, the Lucky app, launched in 2019 by DSQ Group is a mobile platform that gives discounts and convenient financial services to its customers. Co-founder and Managing director of Lucky, Momtaz Moussa, commented on their transition saying:
“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.”
DSQ Group’s expansion plans
The investment from LCP will spur the Group’s expansion plans across the CEMENAP region.
Dsquares operates in multiple business sectors such as telecoms, banking, fast-moving consumer goods (FMCG), oil and gas, and retail.
The company owns a merchant network that reportedly covers over 900 brands and more than 11000 outlets in Egypt, Kenya, Tanzania, Morocco, Jordan, Romania, KSA, and the UAE.
Lucky on its part has scored over five million downloads for its mobile app. The platform is a network of thousands of merchants who are in the industry for entertainment, dining, fashion, hospitality electronics, furniture, fitness, home appliances, etc.
Ayman Essawy, Co-founder and COO of Dsquares was quoted as saying that Lucky has significantly accelerated the DSQ Group’s expansion plan on account of its success, the recap:
“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 & Lucky on the right track to achieve their future goals.”
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