Lucky One raises USD 3 mn: Local consumer credit fintech player Lucky One has raised USD 3 mn in a convertible note from existing investors that include local fintech- and tech-focused VC DisrupTech Ventures, Egypt-focused private equity firm Lorax Capital Partners, and KEM, the company said in a press release (pdf) yesterday.

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SOUND SMART- A convertible note is a type of financing used by startups to raise early-stage capital. Think of it as a bridge loan that can transform into equity or ownership in the company at a later date — investors give money to the startup, which can either be repaid or converted into shares in the company later on.

What’s next: The new financing round will enable the startup to scale up its credit lending offering to users in Egypt. The startup also has plans to expand throughout the region over the coming 24 months, the release said, without mentioning what specific markets the company is looking to enter.

Lucky One? Founded in 2018 by Momtaz Moussa, Ayman Essawy, and Marwan Kenawy, Lucky One is an app that offers “financial flexibility and increased spending power” through its lending scheme, as well as offers and cashbacks for over 100 websites. The company in 2022 launched its Lucky One Card, which allows customers to access cashback rewards, pay mobile bills, and withdraw and deposit funds. It has since expanded its operations both in Egypt and in Morocco, and is now looking to scale its credit vertical as it looks to achieve profitability by the beginning of next year, the release said.

What they said: “On our path to sustainable profitability, Lucky is leveraging its solid collection processes and low default rates to ultra-scale our consumer credit vertical to ensure timely and effective offerings,” CEO Momtaz Moussa said

**We sat down with Lucky One Co-Founder Ayman Essawy for our Founder the Week column in 2022. Check out the interview here.

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