London, 27 April 2023 – DPI has today announced a $165 million equity investment in Kazyon Ltd, the UK parent of the largest discount retailer in Egypt “Kazyon” alongside co-investors, including British International Investment (BII), South Suez and others. The investment demonstrates continued confidence in the Egyptian retail sector and positions the business for future growth as it looks to accelerate its expansion plan across Africa.
Founded in 2014, Kazyon is committed to providing access to affordable products to the underserved market in Egypt and the surrounding region. Since its founding, and supported by DPI’s initial investment in 2022, the company has seen significant growth, positioning itself as Egypt’s largest discount retailer, with over 600 stores in 18 governorates. The company provides groceries to millions of customers at competitive prices, offering a focused range of products across its neighbourhood stores. The backbone of the operations is a proprietary logistics network, with centralised distribution centres across the country. Customer loyalty is rewarded through one of the largest loyalty schemes in the Middle East and Africa.
Building on Kazyon’s strong brand recognition in Egypt, attractive customer proposition and scalable business model, the investment recognises the size and significant growth potential of Kazyon, as it looks to accelerate its expansion strategy, taking the successful model it has built in Egypt and replicating it across new markets.
DPI will help Kazyon accelerate its ambitious expansion strategy, progressing the roll out of its stores across Egypt and moving into new markets. Kazyon will also leverage DPI’s specific expertise in ESG and Impact, implementing new proprietary ESG action plans to support the business on its journey to becoming more sustainable and institutionalised for future growth.
Hassan Heikal, Chairman and Founder of Kazyon Ltd said: “I’m proud of what Kazyon achieved over the last few years. This investment solidifies our position as the leading grocery retailer in Egypt and could not have happened without the trust of millions of customers that we serve regularly, and the dedication of the thousands of employees led by a very capable management team. DPI’s funding and contributions are helping the company to achieve its ambitions to become the largest discount retailer in Africa.”
Ziad Abaza, Partner at Development Partners International said: “Kazyon is an exciting business that has seen significant transformation since it was founded, and under Hassan Heikal’s leadership has established itself as one of the leading grocery retailers in Egypt. The retail market in the region remains significantly underpenetrated and there is significant demand for the products and services Kazyon offers with a growth model that has been proven many times in multiple markets. The business has a successful track
record of innovation, creating new solutions that continually improve customer experience. The business is fast evolving into a tech empowered provider of retail goods to the under-served mass market and we are excited to partner with Hassan and his experienced management team in this next phase of the company’s growth.”
Kazyon was advised by Evercore Partners, Matouk Bassiouni & Hennawi Law office, PWC and Baker Tilly. DPI was advised by White & Case and Debevoise & Plimpton.