Egypt’s Biggest Bank Invests in Fintech Firm Lucky

PayU, a unit of South African multinational holding company, Nasper’s Ltd., and Egypt’s largest bank, National Bank of Egypt, have invested in Egyptian fintech firm Lucky. The funds will be used to allow Lucky to expand into the Middle East.

Lucky raised USD 25 million in a first funding round led by Nclude. The company counts Lorax Capital as an investor. The first round backers included PayU, Global Ventures, National Bank of Egypt, Venture Souq, Banque Misr, Banque du Caire, Endeavor Catalyst, OTF, Arzan Capital and Disruptech.

Lucky: Payment and cashback solutions

Lucky provides credit products and manages cashback rewards. Its services include offering substantial discounts on popular products, cashback systems and payment options for up to 60 months. The company aims to served the continent’s unbanked population. Lucky is “prioritizing markets with a sizable population, low credit penetration and similar macroeconomic dynamics to Egypt,” co-founder and Chief Executive Officer Momtaz Moussa said, “We are delighted to complete this $25 million fund raise. The MENA region’s huge unbanked, young population and 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.”

African startups attract international interest

The international investment in Lucky comes at a time when global investors continue are targeting African startups. According to a report by Magnitt, 77% of VC deals across Africa involved startups from the largest four markets, Nigeria, South Africa, Egypt and Kenya. Fintech was the most popular industry in terms of investments, accounting for 61% of all the capital deployed across the continent. Earlier this month, US private equity firms Tiger Global and Avenir Growth Capital led a funding round for Kenyan e-commerce platform Sokowatch at a $625 million valuation.