LCP Fund II acquires minority stake in loyalty services provider DSQ Group

EGYPT – Lorax Capital Partners Fund II, an Egypt focused private equity firm, has announced that it has acquired a significant minority stake in loyalty services provider DSQ Group (Umbrella company of Dsquares and Lucky) through its LCP Fund II.

The acquisition includes Ezdehar Egypt Mid-Cap Fund’s 22.5% stake, which Lorax Capital was reported to be in talks for back in October.

The bulk of the investment came through a capital increase which the fund says will be used to up-scale Dsquares’ new business lines and expand the company’s footprint in Egypt and abroad.

The investment is the first Lorax has made since closing its LCP Fund II. Lorax said in October it had raised US$142 million from international limited partners including EAEF, EBRD and the French Development Agency’s Proparco for its new US$250 million SME-focused fund.

“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.”

Marwan Kenawy – Co-founder & CEO, Dsquares

LCP’s investment includes a capital increase to support scaling and expansion plans for the mother company within the region and worldwide.

“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,” Ayman Essawy, Co-founder & COO, said.

“We believe that this strategic partnership with LCP will put both Dsquares & Lucky on the right track to achieve their future goals.”

DSQ Group owns and operates Dsqaures, the leading loyalty and rewards solutions provider across MENA and Central Europe, currently serving over 100 million customers through around 45 regional and international clients.

Also, Algebra Ventures, an Egypt-based VC firm and an existing shareholder in DSQ Group, announced it had increased its investment as part of the aforementioned 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,” Marwan Kenawy, Co-founder & CEO of Dsquares, said in a press release

Founded in 2012 by Marwan Kenawy, Ayman Essawy, and Momtaz Moussa, Dsquares is a full-service loyalty solutions provider in the Middle East & Africa. It operates the full spectrum of customer loyalty for clients from technical, operational, and commercial aspects, which helps clients increase and capitalize on customer loyalty and retention.

The startup boasts a large spectrum of key industry players in banking and finance, FMCG, and Telecommunications, among other industries.

The DSQ group also owns Lucky, an app built to offer everyday clients a wide range of discounts from retail brands, which now has over 5 million downloads under its belt, not to mention a varied collection of brands. 

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE

Other Recent Posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.