Lucky: The startup digitizes the cashback sector

The country’s 2016 devaluation of its Egyptian pound was done to protect its foreign currency reserves, to attract foreign direct investments and to allow it to continue to be a nation. meet the International Monetary Fund’s demands for a $12 billion loan.

The Central Bank of Egypt (CBE). devalued the currency again in March this year the biggest problem with this policy is the increase in the price of goods. This has caused a shift of shopping habits and purchasing patterns, as consumers look for incentives and reduced prices.

Despite the economic woes, many fintech startups have discovered a way to meet consumers’ demand to save money. Lucky is one such startup that aims to digitize the cashback sector and tap into Egypt’s rapidly-growing ecommerce sector. 

Lucky was founded by Ayman Elssawy and Momtaz Moussia. It started out as a cashback platform with the goal of becoming a fintech superapp that offers a wide range of financial services. Lucky partnered with AMAN Financial Services to bring its buy-now-pay-later (BNPL) feature to market. The main target of Lucky’s rollout was those who have been locked out from the credit card market.

“We started operations in 2019. We started in 2019 because of this reason. [with]The regulatory framework in Egypt was lacking at the time, which led to cashback. Moussa says that fintech players need a lot support from regulators and how they can make the laws and rules to support financial services in each sector.”

The app allows customers to get cashback in-store, which helps to increase offline conversion rates. It also provides instant gratification for the price-conscious customer.

Before founding Lucky, the pair also founded d-square in 2012 as a B2B loyalty provider. Although they have different value propositions, both businesses address cashflow issues for small and large businesses. Lucky was launched by the duo in 2019 to help retailers address liquidity issues and currency instability. 

“When we started d-square back in 2012, we realised that the Egyptian consumers were very much focused on reining in their expenses, but this was only the case with the lower social segments. After the devaluation in the Egyptian pound in 2017, savings have been the primary trigger for Egyptian consumers and their purchasing power across all social groups. This has also had an impact on several industries. If you look at the banking sector, this is one of the main reasons that consumers choose a credit card over another. Essawy explained that the same holds true for telecom operators when it comes to pricing.

Lucky has relationships with over 30,000 merchants, and targets many industries like fashion, food and drink, and electronics. 

Investors are interested in the growth potential and opportunities within the cashback sector. Last month, Lucky closed a $25 million growth round to grow its network of offline and online brands in different segments and support its plans for geographic expansion. WaffarX, an online cashback site, also raised a Seed round in the seven-figure range back in December 2021. Lucky is also competing with Yagni & Yashri who offer cashback on online purchases through their platforms.

As the fintech sector continues to develop, digital cashbacks will grow in leaps and bounds. However, the country’s current poor digital payment infrastructure and insufficient tech support can slow down the market’s growth. This can lead to poor customer experiences. 

Lucky herself has come under fire from customers for not delivering a quality service. 

“Lucky completes an average of 280,000 transactions monthly and has more than 1.7 million registered users on its platform. [We have a large]We have one of the largest customer bases in fintech startups. This is why we sometimes expect to get complaints from customers. It is quite normal, I believe. Essawy says that all fintech services in the country are still in a very early stage.

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