Egyptian fintech Lucky ONE raises $3 million round to expand its discounts and credit platform

🏷️ Egypt-based fintech Lucky ONE has raised $3 million in a convertible bond funding round, to expand its range of financial services including credit, discounts, and cashback focusing on serving the unbanked population.

• Ayman Essawy (Chairman), Momtaz Moussa (CEO), and Marwan Kenawy founded Lucky ONE in 2019.

💰 Investor lowdown: The round was led by existing investors; including Lorax Capital Partners, KEM, and DisrupTech Ventures.

• This brings the total Lucky One has raised to date to over $50 million.
• The startup’s previously raised a $25 million Series A back in 2022.

📖 The back story

Lucky ONE was started in 2019 by Dsquares, an Egyptian loyalty and rewards solutions provider, before getting spun out as an independent entity two years later.

Leveraging Dsquares' extensive network of partners, Lucky was launched as a consumer product offering cashback, discounts, and rewards.

⚙️ Breaking it down

Managing loyalty solutions for clients allowed Dsquares to observe transaction patterns and understand local consumer behaviors.

This enabled them to build profiles and credit scores for customers, informing their creditworthiness.

Lucky has since evolved to offer a physical card and credit through installment shopping with its partners.

🐂 Bull case

1. They’ve partnered with over 20,000 local and international stores, offering instant credit approval to its 13 million registered users and issuing 300,000 cards.
2. With strong collection processes and low default rates, the company is scaling its consumer credit vertical effectively.
3. They have already expanded to Morocco, with plans to enter the Saudi market soon.

🔮 Flashforward

Lucky ONE is aiming to be profitable by the first quarter of 2025, and plans to use the latest funds to expand its credit services.