Lucky, the rising fintech based in Egypt that provides credit products, offers and cashback rewards, announced Monday, March 21, in a statement to Technext, that it has raised $25 million in a Series A funding round, the largest by a fintech from a Series A round in the country.
The round was led by Nclude Fintech Fund managed by the Dubai-based venture capital, Global Ventures.
Other major investors in the round include PayU, the Prosus-owned Fintech firm specialising in emerging markets; Endeavor Catalyst, Venture Souq, OTF Jasoor Ventures, Arzan Capital and Disruptech Ventures, who joined existing investors and significant shareholder Lorax Capital Partners.
Lucky, which has long said its mission “is to empower the Middle East and North Africa with seamless shopping, savings and payments experience,” in the statement, says that it will use the money to “increase market leadership and build out Lucky’s credit capabilities.”
“Proceeds will be used to increase market leadership and build out Lucky’s credit capabilities as customers become more educated and experienced using credit,” the statement from Lucky reads.
The now four-year-old company has experienced rapid growth through the years, accounting for over eight million registered users, a number provided by Lucky in its statement, immediately making it one of the largest merchant networks in Egypt. Lucky also says that it has seen “250% year-on-year growth in gross merchandise value.”
Momtaz Moussa, one of the co-founders of the app said that they are now “perfectly positioned to build on our momentum” of banking a huge population of the Middle East and North Africa that have been left out by more traditional banks.
“We are delighted to complete this $25 million fundraise. 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 a market leader and expand our current offering,” Moussa said.
Ayman Essawy, the other co-founder added that they are looking forward to expanding their growth beyond the current eight million users.
“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,” Essawy said.
The general partner for Nclude FinTech Fund said that they are “delighted” to come on board and lead the round.
“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,” they said.
They continued, saying that “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.”
The Egyptian fintech space has been gradually pulling its weight in recent years. Last year, Algebra Ventures launches a $90 million fund for investment into tech startups in the country and North Africa at large. This move by Lucky further cements Egypt’s place as a key player in the tech space in Africa.
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